Today, more than ever before, people see the link between their money and their morals – and are seeking to do something about it. They drive their carpool in a hybrid. They recycle their bottles and their bags. Their milk is organic, their coffee is fair trade, their beef is grass fed, and their eggs are cage free. They buy local and American and from companies that treat their workers fairly and act with a conscience.
But so often they end up asking: Why in the world am I investing in ways that don't live up to those same values?
That's why funds in so-called “sustainable investment” strategies grew by almost 80% in just two years – from $3.7 trillion in 2012 to $6.6 trillion in 2014.1
Skyrocketing Sustainable Investment
But not all sustainable investments are created equal. They all have the best of intentions, but their approach can be very different when it comes to their financial returns.
That's why it's helpful to understand the difference between these strategies: