What are the key principles of sustainable investing?

What are the key principles of sustainable investing?

Sustainable investing focuses on environmental, social, and governance (ESG) factors. Key principles include considering long-term impacts, integrating ESG criteria into investment decisions, and engaging with companies to promote sustainable practices.

How can I assess a company's sustainability performance?

You can assess a company's sustainability performance by reviewing its ESG reports, third-party ratings, and analyzing its practices related to resource management, labor relations, and community engagement.

What are some examples of sustainable investment strategies?

Examples include negative screening, positive screening, impact investing, and shareholder advocacy, each focusing on different aspects of sustainability.

Are there any risks associated with sustainable investing?

Yes, risks include potential underperformance compared to traditional investments, greenwashing, and regulatory changes affecting ESG criteria.

How can I start my journey in sustainable investing?

Start by educating yourself on ESG factors, setting clear investment goals, and considering funds or advisors that specialize in sustainable investments.