For the individual investor, responsible investment means that when one make one’s investment choices (selecting a fund manager or selecting and managing individual investments), one wishes to see one’s investments contribute to promoting enhanced corporate social behaviour and corporate environmental stewardship. Various strategies have evolved over the years to help investors achieve these goals. For some investors, enhanced corporate social behaviour and corporate environmental stewardship are synonymous with enhanced financial risk management. For others, responsible investment is more motivated by the desire to make the world more economically, socially and environmentally sustainable. Whether referred to as responsible, sustainable, green, ethical or impact investing1, the underlying concept remains the same: Make a difference while growing one’s money.
1 While impact investment has a slightly different meaning from the other terms listed here, for the purposes of this educational platform, we consider the term ʻresponsible investmentʼ to be sufficiently broad to include impact investment. More detailed distinctions are explained in the ʻStrategiesʼ and ʻProductsʼ sections of this site.