What is Sustainable Finance?
Sustainable finance relates to investment and finance that considers environmental, social and governance (ESG) impacts.
The decision to consider ESG can be for reasons that are ethical or financial or both. The strategies investors use to consider ESG issues are wide ranging and depend on the level of positive impact an investor wants to make, if any.
Learn moreBenefits
Sustainable investment and finance offers choice to individuals and organisations who want:
- To profit from companies and activities that avoid causing harm
- Investments that are more likely to perform well over the long-term
- To reduce the financial risk of poor environmental, social and corporate governance (ESG) behaviours
- To speed up solutions to global crises such as inequality and the climate emergency.
Strategies
The strategies investors use to consider ESG issues are wide ranging and depend on the level of positive impact an investor wants to make. We explain the differences between ethical, ESG, impact, and other familiar strategies here.
Learn moreAvailability
In 2018, Europe, the United States, Canada, Japan, and Australia and New Zealand had a total of $30.7 trillion sustainable investments (GSIA, 2019).
The Investment Association found that 26% of all UK assets are invested using a responsible or sustainable strategy. That is a lot of funds!
However, it is important to know that the degree or depth of the strategies being used will vary. It is up to the investor to find out ‘how ESG?’ or ‘how sustainable?’ a fund is. Take a look at the strategies fund managers use, suggested questions to ask, then find an adviser or provider in our directory.
