What is it?
For the individual investor, responsible investment entails making investment decisions (such as selecting a fund manager or selecting and managing individual investments) that aim to improve corporate social behavior and corporate environmental stewardship. There are various strategies that have evolved over the years helping investors to achieve these goals.
For some investors, better corporate social behavior and better corporate environmental stewardship are synonymous with better financial risk management. For others, responsible investment is more motivated by a desire to contribute to making our world more economically, socially and environmentally sustainable.
Whether it be called responsible investing (RI), socially responsible investing (SRI), sustainable investing, ESG investing (for environmental, social and governance investing), green investing, ethical investing or impact investing, the underlying concept remains the same — making a difference with oneʼs money while making it.