What is Responsible Investment?

Responsible investment is a type of investment that acknowledges the importance of environmental, social and governance factors. It recognises that for long-term sustainable returns it also depends on a well-functioning and well-governed social, environmental and economic system. Responsible investment values both financial and non-financial information, risks and opportunities. There has been a global momentum around responsible investment which is driven by various factors. This includes the fact that ESG factors play a material role in determining risk and return, the value-destroying reputation risk and costs from ESG issues such as pollution, working conditions, corruption etc.