Green Finance: How to practice sustainable investing

The finance landscape is transforming with sustainability at its core. Sustainable finance integrates environmental, social, and governance criteria, revolutionising traditional investment strategies.

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ESG Integration: Incorporate environmental, social, and governance factors along with traditional financial metrics in investment decisions.

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Impact Investing: Focus on investments that create positive social and environmental impacts while also delivering financial returns.

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Divestment: Withdraw investments from companies engaged in environmentally harmful activities, such as fossil fuel industries.

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Despite the increasing momentum, green finance and sustainable investment face several obstacles:

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Standardisation and Transparency: Defining and assessing the environmental impact of investments is complex and requires uniform frameworks and strong reporting practices.

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Limited Green Investment Opportunities: The availability of genuinely impactful green projects has not yet caught up with the rising demand from investors.

Source: Pexels