investment approaches Flashcards
(12 cards)
what is responsible investments
investing while considering ESG factors; not mutually exclusive
what is socially responsible investment
approach that applies social and environmental criteria when evaluating company (exclude companies based on ethical concerns) (no tobacco)
what is best in class
investors select companies that rank the highest in ESG within in their industry
what is sustainable investment
investing in companies that support long term environmental and social sustainability (screens out activities like burning coal)
what is thematic investment
invests based on long term trends/themes
what is green investment
investing in companies that help the environment fight climate change (green bonds are used for this)
what is social investment
investing where social challenges are being addressed
what is impact investing
aims to generate measurable social or environmental impact
what is ethical & faith based investment
investing based on personal, moral, values (screens out companies which investor disagrees with)
what is shareholder engagement
investors (shareholders) use their influence to influence the board of directors to promote esg practices
what is corporate social responsibility
company voluntarily takes social/environmental responsibility beyond legal requirement
what is triple bottom line
companies focus on people, planet and profit instead of just financial performance