At SustainFunding we use the term sustainable investing (SI) or responsible investing (RI) to encompass approaches that consider Environmental, Social and Governance (ESG) factors in the investment analysis and decision process.
Those concepts support a sustainable economy as they consider both:
how ESG might influence an asset risk returns (ESG Investing, focus on process), as well as
how investments can impact society and the environment (Impact investing, focus on outcome).
This two way relationship between ESG and investments refers to the concept of double materiality.
Here is our interpretation of sustainable investment concepts and how they interconnect to each other’s.