Understanding the difference between ESG and Sustainability investing
- On January 12, 2021
- By GrowthInvest Marketing
Investors are increasingly interested in investing responsibly, by including non-financial factors in their investment decisions. But the rapid rise of responsible investing has led to the emergence of some terminology that is used inconsistently. With no settled definitions, things can quickly get confusing for individuals who are trying to navigate the responsible investment sector for the first time.
Below, we set out how Vala interprets the difference between ‘ESG investing’ and ‘sustainable investing’ – two important and distinct terms that are sometimes blurred together.
ESG (Environmental, Social and Governance) investments are those where the investor’s criteria include an analysis of a company’s non-financial policies and performance.
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