- Sustainable investing is an umbrella term for four distinct investment strategies which share the objectives of reducing exposure to non-sustainable activities and increasing exposure to sustainable activities.
- Of these four strategies, Impact investing seeks to achieve investors’ risk and return objectives through investing in assets which will, over the holding period, create positive social and/or environmental outcomes.
- We see such broad-based interest in having sustainable ideas integrated into portfolio management from the owners of capital across many regions of the World that we believe sustainable investing is a growing trend, not a fad.
- So much so that we believe that in the not too distant future capital markets will move from a paradigm of risk-adjusted returns to one of risk-adjusted and sustainability-optimized returns.
You can download our note “Pricing Impact” which explains our ideas on impact investing.