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Sustainability Matters

Does Sustainable Investing Help or Hurt Returns?

It's complicated, but sustainable funds more than hold their own on a risk-adjusted basis.

The rationale for sustainable investing makes sense for more and more investors:

  • Emphasize material environmental, social, and governance issues that contribute to more-thorough financial analysis
  • Focus on the long term, taking into account the impact of decisions on an extended sphere of stakeholders, including the planet itself
  • Direct investment to areas that need it as the world transitions to a low-carbon economy
  • Encourage more responsible corporate behavior, which makes firms more attractive to talented workers and thus more competitive, enhances intangible value in a social media environment that magnifies corporate missteps, and strengthens confidence in the financial system overall.