5 Questions
What does responsible investment entail according to the text?
Taking into account environmental, social, and governance factors in all investment activities
How does the ILG's State of Practice Review describe responsible investment?
By identifying six aims and six processes that collectively describe the field
What is a notable aim of responsible investment according to the ILG's State of Practice Review?
Aligning ESG motivations with those of clients
How does Aristotle's approach to defining friendship compare to practitioners' approach to explaining responsible investment?
Both involve describing and analyzing various forms to explain the concept
According to PGGM, what is an essential aspect of responsible investment?
Taking account of environmental, social, and governance factors in all investment activities
Study Notes
Responsible Investment
- Responsible investment entails an investment approach that considers the environmental, social, and governance (ESG) factors that can impact long-term investment performance and societal welfare.
ILG's State of Practice Review
- The ILG's State of Practice Review describes responsible investment as an investment approach that considers ESG factors and uses active ownership to promote sound governance and sustainability.
Aim of Responsible Investment
- A notable aim of responsible investment, according to the ILG's State of Practice Review, is to achieve better long-term investment returns while contributing to a more sustainable economy.
Comparison to Aristotle's Approach
- Aristotle's approach to defining friendship is characterized by simplicity and clarity, whereas practitioners' approach to explaining responsible investment is often ambiguous and complex.
PGGM's View on Responsible Investment
- According to PGGM, an essential aspect of responsible investment is active ownership, which involves engaging with companies to promote better governance and sustainability practices.
Test your knowledge of responsible investment and ethical decision-making with this quiz on markets, morals, and values. Explore the concepts of responsibility, ethics, and investment practices while gaining insights from Aristotle's perspectives on friendship and values.
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