Sustainable Finance

A fund selects companies focused on renewable energy, such as wind and solar power, aligning its investments with sustainability goals while seeking financial returns.

• Thematic Investing

• Best in Class

• ESG Integration

• Impact Investing

An investment firm evaluates companies based on environmental and social responsibility metrics within each industry and selects only the highest performers.

• ESG integration

• Best-in-class

• Active ownership

• Thematic investing

A financial institution invests in a startup that develops affordable healthcare solutions for underserved populations, prioritizing measurable social benefits alongside financial returns.

• ESG Integration

• Thematic Investing

• Best-in-class

• Impact investing

A fund manager adjusts financial models to reflect risks related to climate policies and carbon emissions when assessing a company’s valuation.

• Active ownership

• Thematic investing

• ESG integration

• Exclusionary/Negative Screening

An investor engages with company leadership to encourage stronger governance and environmental policies, influencing business decisions through shareholder actions.

• Active ownership

• Thematic investing

• Impact investing

• Best-in-class

A socially responsible investment fund focuses on businesses that follow international labor and human rights standards, ensuring alignment with ethical principles.

• Values/Norm-Based Screening

• ESG Integration

• Thematic Investing

• Best-in-class

A mutual fund prioritizes companies that perform well on ESG indicators but does not restrict investments to specific industries, allowing high-scoring firms from all sectors.

• ESG Integration
  
  

• Best-in-class

• Active ownership

• Thematic Investing

A private equity firm provides capital to a company specializing in clean water access for rural areas. The company must report environmental and social impact metrics to investors.

• ESG integration

• Exclusionary/Negative Screening

• Best-in-class

• Impact investing

A wealth management firm invests its funds in firms that are leaders in specific sustainability goal, such as reducing carbon emissions or supporting social equity, while avoiding direct involvement in corporate decision-making

• Active Ownership
  
  

• ESG integration

• Thematic Investing

• Best-in-class

A large institutional investor incorporates environmental, social, and governance factors, such as governance and regulatory compliance risks, into its valuation models when adjusting its portfolio, without focusing on a specific ESG theme.

• ESG Integration

• Values/Norm-Based Screening
  
  

• Thematic investing

• Active ownership