Sustainable Investing refers to a range of practices in which investors aim to achieve financial returns while promoting long-term environmental or social value. Combining traditional investment approaches with environmental, social, and governance [ESG] insights has led to investors generating more comprehensive analyses and making better investment decisions. Sustainable investing ensures that private and public entities are not assessed soley on short-time financial gains but on a broader lens of what and how they contribute to society. Investors must think critically about investments’ potential impacts as they connect to environmental, political and societal landscapes.

Changing the direction of investments now towards low-carbon and sustainable options will help to prevent some of the worst outcomes of these risks. In-depth assessment of the social and environmental factors that affect investments will help investors to make better decisions. ESG investing (that is, investment where environmental, social and governance aspects are identified, mitigated, and managed) has been growing strongly over the last decade. This development is largely because effective management of high-impact risks such as climate change, biodiversity loss, growing inequality, and poor governance is recognised as an increasingly important part of sustainable and regenerative social infrastructure development.