Responsible Investing (RI) incorporates environmental, social and governance features (ESG) into the selection of investments.
In recent years, responsible investment has come to include:
Responsible investors know that the addition of ESG factors into the selection of investments can provide positive societal impacts. In the past decade, using ESG factors has become a mainstream function of good investment practice, which has resulted in more educated investment decisions. ESG analysis gives us a bigger and clearer picture into the operations of the companies we invest in and the quality of their management.
The goal of responsible investing is to motivate responsible approaches to investments. “A recent study has shown that analysts are giving more positive recommendations to companies that address ESG risk as there is a body of evidence that ESG considerations have an impact on the financial performance of securities” – Source https://riacanada.ca/ri-basics/