Ethical and Sustainable Investment
Refreshed January 2025 | CPD time: 2 Hours
As participants in financial capital markets, individuals and organisations are free to select investments on any basis they wish (subject to fiduciary responsibility in certain cases, eg, trustees to a trust’s beneficiaries). While conventional market practice dictates that investors should operate solely to maximise their returns, ethical, sustainable and responsible investors believe that moral considerations should also apply, or that short-termism is supporting damaging corporate activities. There may be variations in interpretation but, in summary, decision making for ethical, sustainable and responsible investment includes factors other than solely maximising returns.
1. Introduction and Background
2. Alignment with Positive Impacts
3. Investment Screening
4. Investment Approaches
5. The Price of Conscience
6. Faith-Based Investing
7. Other Approaches
8. Conclusions
Module Test