What are the different types of sustainable investments, such as ESG and impact investing?
Curious about sustainable investing
There are several types of sustainable investments, including:
1. ESG (Environmental, Social, and Governance) Investing: ESG investing takes into account a company's environmental impact, social responsibility, and governance practices. It evaluates companies based on their sustainability practices and their impact on society and the environment.
2. Impact Investing: Impact investing aims to generate measurable social or environmental impact alongside a financial return. It involves investing in companies, organizations, and funds that work towards specific social or environmental objectives.
3. SRI (Socially Responsible Investing): SRI involves investing in companies that meet certain social or ethical criteria, such as those related to environmental sustainability, human rights, or diversity.
4. Green Bonds: Green bonds are fixedincome securities that are issued to finance environmentallyfriendly projects, such as renewable energy, green buildings, or sustainable agriculture.
5. Clean Energy Funds: Clean energy funds invest in companies that are involved in renewable energy production or that provide energyefficient solutions.
6. Microfinance: Microfinance involves investing in financial institutions that provide loans to lowincome individuals and businesses, with a focus on supporting economic development in disadvantaged communities.
Overall, sustainable investments aim to create positive social and environmental impact while generating financial returns for investors.