What is Sustainable Investing and How Can It Help You Succeed?

Traditional investment provides value by converting investors' capital into investment opportunities that involve risks commensurate with expected returns.

Sustainable investment

balances traditional investment with environmental, social and related governance (ESG) knowledge to improve long-term results. Sustainable investment is an investment strategy that considers environmental and social impacts, in addition to financial returns. The assets included in specific sustainable investment strategies have grown at an accelerated pace in recent years, and this trend shows no sign of slowing down.

Sustainable investing has become increasingly popular due to the demand of millennials and impact investors concerned with ethical investing or financing companies with intrinsic values that have a positive impact and drive change. It has also been shown that people and companies can benefit economically by making their investments more sustainable. Cheng also points out that ESG ETFs, or exchange-traded funds, have become more popular, as they make sustainable investing more accessible and affordable than other types of mutual funds. ESG funds invest in companies with business practices that allow them to have a social and sustainable impact on the world.

Sustainable investment can help shape the future of how companies interact with the world around them, the people they hire and the products they manufacture. Over time, this transformed into environmental, social and governance factors, or ESG, which now form the basis of most sustainable investment processes. Other common definitions of sustainable investing include “ethical investment”, although what is considered ethical differs between investors, along with “socially responsible investment”. Sustainable investment refers to a series of practices in which investors seek to obtain financial returns and, at the same time, promote long-term environmental or social value.

Sustainable investment ensures that companies are not judged solely by short-term financial gains, but by a broader view of what they contribute to society and how they contribute to society. Robeco's goal is to enable its customers to achieve their financial and sustainability objectives by providing superior solutions and investment returns. Here's an overview of what sustainable investing is, what it means for companies and investors, and how it can help improve your portfolio and the world. In addition, there are now more robo-advisors than ever that offer automated sustainable investment portfolios at no additional cost.

Whether you're an individual investor who wants to make more informed decisions or a business leader concerned about sustainability, completing an online course focused on sustainable investment can be an effective way to quickly gain the knowledge and skills you need to succeed. Robeco also firmly believes that sustainable investment should include the use of active ownership through voting and participation to improve companies' ESG credentials.