Sustainable investing: the basics

Sustainable investing is about investing in progress and recognizing that companies solving the world’s biggest challenges may be best positioned to grow. It is about pioneering better ways of doing business, and creating the momentum to encourage more and more people to opt in to the future we're working to create.

Through the combination of traditional investment approaches with environmental, social and governance (ESG) insights, investors ranging from global institutions to individuals are taking a sustainable approach to pursuing their investment goals.

How to invest sustainably

There is a broad spectrum of ways to incorporate sustainable investing into your portfolio. They can be broken down into three main categories.

ESG

Evaluating and selecting companies based on their commitments to positive environmental, social and governance business practices.

Thematic

Focus on a particular E, S, or G issue, for example clean energy or the diversity of a company’s workforce.

Impact

A targeted investment that is geared toward achieving both a measureable susatinable outcome alongside a financial return.

The growth of sustainable investing

Sustainable investing is growing across a wide range of investors. The demand is being driven by a number of trends.

Demographic shifts

A new and more diverse generation of investors are seeking sustainable solutions for the heart of their investment portfolios.

Government policies

Evolving government policy is prompting large institutions around the world to put capital towards sustainable investments.

Evolving views on risk

Improving quality and availability of ESG data can help investors identify previously hidden risks and opportunities.