Sustainable Finance: ESG Investment Explained, Part II

Planetsave has published a blog by Carolyn Fortune that distinguishes SRI (socially responsible investment) from ESG-driven (environment, social, governance) investment, a field of activity that overlaps but is quite distinct from SRI. Fortune describes ESG investment as a strategy that incorporates ESG criteria into investment analysis. It is especially suited to shareholders looking for channels to raises issues of concern, and to lock in profits from financial outperformance over the long term, as “a growing body of academic research shows a strong link between ESG and financial performance.” She notes that more than 200 institutional investors and money managers controlling $2.56 trillion in assets filed shareholder resolutions relating to ESG issues between 2014 and 2016. If money talks, that’s a loud vote of confidence.

John Howell, Editorial Director

Special Announcement: Ethical Corporation reports on how Patagonia, Fossil Group, Intel, and Timberland share employee engagement strategies