What is sustainable investing?

"Sustainable investing" (also known as ethical investing or socially responsible investing) is a form of investing in which ethical, socio-economic, and environmental criteria are taken into account. Investors select their investments based on their contribution to themes such as care for the environment, the welfare of people and animals, poverty reduction, and social justice.

In sustainable investing, it is often assessed whether companies meet certain standards, such as avoiding investments in sectors like alcohol, tobacco, and defence equipment, or conversely, stimulating sustainable energy production. Additionally, attention is paid to responsible policy, respect for human rights, and corporate governance.

Although there is sometimes an assumption that sustainable investing can lead to lower returns, opinions on this are divided. More and more investors see the value of socially responsible investing, despite potential return sacrifices.