What is sustainable and responsible investments?
Sustainable and responsible investments is a collective name for different working methods that investors apply to take environmental and social responsibility in their investments.
In Eurosif's European SRI Study 2012, seven different strategies are described.
Norms-based screening
Investment in themes or assets linked to the development of sustainability. Thematic funds focus on specific or multiple issues related to ESG.
Best-in-Class investment selection
Approach where leading or best-performing investments within a universe, category, or class are selected or weighted based on ESG criteria.
Sustainability themed investment
Investment in themes or assets linked to the development of sustainability. Thematic funds focus on specific or multiple issues related to ESG.
Exclusion of holdings from investment universe
Metoden utesluter enskilda investeringar eller klasser av investeringar som företag, branscher eller länder från det tillgängliga universumet.
Integration of ESG factors in financial analysis
The explicit inclusion by asset managers of ESG risks and opportunities into traditional financial analysis and investment decisions based on a systematic process and appropriate research sources.
Engagement and voting on sustainability matters
Engagement activities and active ownership through voting of shares and engagement with companies on ESG matters. This is a long-term process, seeking to inf luence behaviour or increase disclosure.
Impact investment
Impact investments are investments made into companies, organizations and funds with the intention to generate social and environmental impact alongside a financial return. Impact investments can be made in both emerging and developed markets, and target a range of returns from below market-to-market rate, depending upon the circumstances
