How is it different from traditional investing?
Curious about sustainable investing
Sustainable investing differs from traditional investing by considering environmental, social, and governance (ESG) factors in addition to financial metrics when making investment decisions. While traditional investing focuses solely on financial returns, sustainable investing aims to create longterm value by investing in companies that promote sustainable practices and are aligned with the investor's values.
Traditional investing typically involves investing in companies solely based on their financial performance and profitability, without taking into account their impact on society or the environment. Sustainable investing, on the other hand, seeks to invest in companies that are making a positive impact on the world, such as those focused on renewable energy, clean technology, and social justice. This type of investing takes a broader view of risk, recognizing that environmental and social factors can have an impact on financial performance.
Overall, sustainable investing aims to align an investor's values with their investment portfolio, while still achieving competitive financial returns.