The Responsible Investment Spectrum
About this Infographic:
The original visual was developed by Bridges Fund Management, published in its report titled ‘How we define the sustainable and impact investment market’.
This infographic shows the various approaches to responsible investment. The aim is that by understanding this spectrum of capital and how it reacts to different market opportunities, investors are able to design different investment strategies to promote entrepreneurial solutions to societal challenges.
Investors are increasingly integrating Environmental,
Social and Governance
(ESG) considerations in their investment strategies. This infographic shows the various approaches to responsible investment and how investors can utilise ESG data to reduce the risk exposure of their portfolios through screening
and due diligence. Sustainable investors go one step further and actively seek to invest in forward-thinking companies with high ESG ratings and credentials. The outcome of these strategies are portfolios that deliver long- term financial return through investing in companies that understand and proactively manage their material ESG risks and opportunities.