Sustainability. But why?
Sustainability means to be conscious of one’s actions and their consequences and to design them in a way that avoids damage and creates new opportunities. The actions of today’s generation should not limit the opportunities of future generations. In the field of investments, a sustainable strategy aims at the generation of stable, long-term returns.
Responsible investment involves considering environmental, social and governance (ESG) issues when making investment decisions and influencing companies or assets (known as active ownership or stewardship). It complements traditional financial analysis and portfolio construction techniques.
Responsible investor can have different objectives. Some focus exclusively on financial returns and consider ESG issues that could impact these. Others aim to generate financial returns and to achieve positive outcomes for people and the planet, while avoiding negative ones.