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What Is Sustainable Investing?

Alfonso Galarpe February 06, 2019


Sustainable investing is a broad term for investment approaches that consider environmental, social and governance (ESG) factors and their impact (French, 2017).  Every investor should be concerned with ESG if we are to leave a legacy for a future generation should we manage not to devastate our planet.  Emphasize to good stewardship of the environment, and its populated globe lies within each to govern our most precious resources with or without government intervention.  Investors have a tremendous influence on the corporate world to put ESG in priority tempered with its objective to increase stock prices. 

Our society as a whole is maturing to demand social and environmental impact for the greater good. Corporations has no choice but to comply with the change of time. Thus ESG stocks will outperform non-ESG stocks.  Invest in funds with social enterprise organizations; for-profit businesses that trade to internationally tackle social problems, improve communities, provide people access to employment, training, or help with the environment (Social Enterprise Definition, n.d.)

ReferencesFrench, S. (2017, October 17). ESG in Focus: What Is Sustainable Investing? Retrieved from Oppenheimer Funds: https://www.oppenheimerfunds.com/advisors/article/esg-in-focus-what-is-sustainable-investingSocial Enterprise definition. (n.d.). Retrieved from Social Traders: https://www.socialtraders.com.au/about-social-enterprise/what-is-a-social-enterprise/social-enterprise-definition/