Defining ESG & The Spectrum of Responsible Investing (Part 2)

Written by
Nick Giometti
  1. Responsible Investing refers to the broader umbrella of capital allocation strategies that, while unified in their goal of achieving long-term sustainability, differ in their practical approach to capital allocation.
  2. Socially Responsible Investing uses exclusionary screens to filter out investments that might violate a specific investor’s moral or ethical criteria.
  3. Impact Investing targets both financial returns and specific sustainability related outcomes such as emissions, education, or healthcare.
  4. ESG Investing evaluates non-balance sheet risk that is still material to long-term financial sustainability.

Read more about ESG in Part 1 of this series, ESG: Speaking the Same Language, to dive into the history and relevance of ESG as a framework.