Responsible investing (RI) is a broad field of investment that has seen significant growth over the last decade.
According to the Responsible Investment Association of Australia’s 21st Benchmark report, Responsible investing now represents ’43% of the total professionally managed funds’ in Australia. The industry growth has come at an increase in the diversity of investment practices and styles. The terminology used to describe the different investment styles can create some confusion, especially for retail investors. This note looks to provide a high-level guide of the most referenced RI strategies and styles in investment markets.
Responsible investment should reflect the beliefs and values of an individual or organisations. It is also widely agreed that a strong governance structure that addresses social and environmental factors is essential to manage risk and generate stable long-term returns.
Read more here.