Sustainability Community

Is ESG investing the same as responsible investing and sustainable investing?  Interesting article from CFA Institute in ESG Clarity on the differences between each and CFA's definition in CFA's Certificate in ESG Investing | CFA UK.  See definitions below. 

https://esgclarity.com/critics-of-esg-investing-should-get-the-definition-right-first/ 

Definitions will be further clarified in the ISSB's definition of sustainability and UK FCA's Sustainability and Labels consultation / policy statement expected to be published in Q3 this year (particularly around restricted terms for products/services that have sustainability characteristics but do not meet the criteria for one of the FCA's proposed sustainability labels - more info on FCA's consultation and feedback on proposals/ next steps announced in March here FCA updates on its Sustainability Disclosure Requirements (SDR) and investment labels consultation )   

"ESG investing is an approach to managing assets where investors explicitly incorporate environmental, social, and governance (ESG) factors in their investment decisions with the long-term return of an investment portfolio in mind….ESG investing is concerned with how ESG issues can impact the long-term return of assets and securities, whereas other responsible investment approaches can also take into account non-financial value creation and reflect stakeholder values in an investment strategy.

"Responsible investment is a strategy and practice to incorporate ESG factors into investment decisions and active ownership. It considers both how ESG factors might influence the risk-adjusted return of an asset and the stability of an economy and how investment in and engagement with assets and investees can impact society and the environment.

"Sustainable investment refers to the selection of assets that contribute in some way to a sustainable economy-that is, an asset that minimises natural and social resource depletion."

Is ESG investing the same as responsible investing and sustainable investing?  Interesting article from CFA Institute in ESG Clarity on the differences between each and CFA's definition in CFA's Certificate in ESG Investing | CFA UK.  See definitions below. 

https://esgclarity.com/critics-of-esg-investing-should-get-the-definition-right-first/ 

Definitions will be further clarified in the ISSB's definition of sustainability and UK FCA's Sustainability and Labels consultation / policy statement expected to be published in Q3 this year (particularly around restricted terms for products/services that have sustainability characteristics but do not meet the criteria for one of the FCA's proposed sustainability labels - more info on FCA's consultation and feedback on proposals/ next steps announced in March here FCA updates on its Sustainability Disclosure Requirements (SDR) and investment labels consultation )   

"ESG investing is an approach to managing assets where investors explicitly incorporate environmental, social, and governance (ESG) factors in their investment decisions with the long-term return of an investment portfolio in mind….ESG investing is concerned with how ESG issues can impact the long-term return of assets and securities, whereas other responsible investment approaches can also take into account non-financial value creation and reflect stakeholder values in an investment strategy.

"Responsible investment is a strategy and practice to incorporate ESG factors into investment decisions and active ownership. It considers both how ESG factors might influence the risk-adjusted return of an asset and the stability of an economy and how investment in and engagement with assets and investees can impact society and the environment.

"Sustainable investment refers to the selection of assets that contribute in some way to a sustainable economy-that is, an asset that minimises natural and social resource depletion."