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ESG vs impact investing: what’s the difference?

What's the difference between ESG and impact?

According to US SIF: The Forum for Sustainable and Responsible Investment, total global sustainable investment assets grew exponentially from US$3 trillion in 2010 to US$12 trillion in 2018. This encompasses the full spectrum of sustainable investing, including investments made in line with environmental, social and governance (ESG) criteria, and impact investing.

Against a COVID-19 backdrop and new data on climate change trends, sustainable investing is maturing faster and generating greater interest in private markets than ever before. However, despite the popularity and significance of investing in this area, there has been a lot of confusion around terminology.

Understanding the concepts of ESG and impact investing is key to avoid falling in the ‘greenwashing’ trap. In my latest article published by Real Deals, I seek to define these related yet distinct terms, considering the specific characteristics and applications of each sphere and how they differ. Click below to read on the Real Deals website:

Read article on Real Deals