What is a key characteristic of sustainable investment?

A key characteristic of sustainable investment is its focus on promoting positive environmental impacts alongside financial returns. This approach recognizes that investments should not only generate profit but also contribute to ecological sustainability, social well-being, and responsible governance. Investing in companies that prioritize environmental considerations, such as reducing carbon footprints, promoting renewable energy, and supporting sustainable practices, aligns with the principles of sustainable investment.

Such investments are designed to support long-term viability and ethical practices that benefit both the planet and society, potentially leading to better financial performance over time. This holistic view sets sustainable investing apart from traditional investment strategies that may prioritize profits without regard for social or environmental consequences. In contrast, other options, such as focusing solely on financial returns or investing in areas with known negative impacts, do not align with the fundamental goals of sustainability and responsible investing.