- A growing number of investors want to see their money go toward stocks or funds that are both profitable and reflective of their social values.
- Three styles of investing fulfill this: Environmental, social and governance (ESG), socially responsible investing (SRI) and impact investing.
- ESG looks at the company’s environmental, social and governance practices, alongside more traditional financial measures.
- Socially responsible investing involves actively removing or choosing investments based on specific ethical guidelines.
- Impact investing looks to help a business or organization complete a project or develop a program or do something positive to benefit society.
Source: Investopedia.com/financial-advisor/esg-sri-impact-investing-explaining-difference-clients/