Quick Definition

Sustainability in finance refers to investment strategies that consider environmental, social, and governance (ESG) criteria to generate long-term competitive financial returns and positive societal impact.

Examples

• 1Investing in green bonds that fund renewable energy projects.
• 2Incorporating ESG scores into the stock selection process for a mutual fund.
• 3Choosing to invest in companies with strong labor practices and low environmental impact.
• 4Divesting from industries that have a high carbon footprint, such as fossil fuels.

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