What is the difference between impact investing and ESG?

What is the difference between impact investing and ESG?

Impact investing focuses on generating social and environmental benefits alongside financial returns, while ESG (Environmental, Social, Governance) criteria are used to evaluate a company's ethical impact and sustainability practices.

Can you give me examples of impact investing?

Sure! Examples include investing in renewable energy projects, affordable housing initiatives, or companies that provide clean water solutions.

How do ESG ratings affect investment decisions?

ESG ratings help investors assess risks and opportunities related to sustainability, influencing their investment choices and portfolio management.

Are there any criticisms of impact investing?

Yes, some criticisms include concerns about the effectiveness of measuring impact, potential greenwashing, and the challenge of balancing financial returns with social goals.

What trends are emerging in the ESG space?

Emerging trends include increased regulatory scrutiny, a focus on climate change, and the integration of ESG factors into mainstream investment strategies.