What is responsible investment?
Responsible investment is a purposeful approach to investing. To the investor, it explicitly recognises two things: one, the significance of environmental, social and governance factors, and two, the long-term health and stability of the whole market. Whilst it is not a new concept, it has become more mainstream; thanks to initiatives like the UN-backed Principles for Responsible Investment (PRI), the world’s leading proponent of responsible investment, supported by the United Nations.
A strategy and practice to incorporate environmental, social and governance (ESG) factors in investment decisions and active ownership.
PRI’s definition of responsible investment