Tag: investment strategy

  • Sustainable Finance Disclosure Regulation

    Sustainable Finance Disclosure Regulation The Sustainable Finance Disclosure Regulation (SFDR) is a European Union regulation that requires financial market participants and financial advisors to disclose how they integrate environmental, social, and governance (ESG) factors into their investment decisions and advisory processes. Implemented to enhance transparency, the SFDR aims to provide investors with clearer information on…

  • Sustainable Finance Action Plan

    Sustainable Finance Action Plan The Sustainable Finance Action Plan (SFAP) is a major EU policy initiative aimed at promoting sustainable investment across the 27-nations. Introduced by the European Commission in March 2018, the plan responds to the Paris Agreement and the UN’s 2030 Agenda for Sustainable Development, aligning with the European Green Deal’s goal of…

  • Strategic Investment

    Strategic Investment Strategic investment refers to an investment made with the goal of advancing an organization’s long-term objectives, often beyond immediate financial returns. This type of investment typically aligns with a company’s broader mission, such as entering new markets, gaining competitive advantage, securing critical resources, or fostering innovation. Strategic investments are often used in mergers…

  • Socially responsible investing

    Socially responsible investing Socially responsible investing (SRI) is an investment strategy that incorporates environmental, social, and governance (ESG) criteria into decision-making to achieve both financial returns and positive impact. SRI investors select companies based on ethical considerations—such as environmental stewardship and human rights—while avoiding those involved in harmful activities like tobacco or fossil fuels. This…

  • Principles for responsible investment

    Principles for responsible investment The Principles for Responsible Investment (PRI) are a set of six voluntary guidelines designed to help investors integrate environmental, social, and governance (ESG) factors into investment decisions. Launched by the UN in 2006, the principles aim to encourage sustainable and responsible investment practices that align financial goals with broader societal and…

  • Positive screening

    Positive screening Positive screening is an investment strategy where asset managers actively select companies or assets based on their strong environmental, social, and governance (ESG) performance relative to their peers. This approach identifies businesses with exemplary practices in sustainability, ethical governance, and social responsibility, making them candidates for inclusion in sustainable investment portfolios. Unlike negative…