Sustainable Investing: What Everyone Needs to Know®
H. Kent Baker
,
Hunter M. Holzhauer
, and
John R. Nofsinger
Abstract
Can investors do well fi-nancially and at the same time do good for the world? Should they try? Many assume that investors “don’t care who wins” if they’re making mon-ey. For some investors, this mindset still rings true. Yet, many other investors challenge this stereotype and prefer to “make money mean more.” Thus, they have dual goals: making money and doing good. This viewpoint, called sustainable investing, has gained considerable momentum in the last few decades. Sustainable investing delivers value by balancing traditional investing with environmental, social, and governance-related (ESG) insights to improve long-term outcomes. Some view sustainable investing as critical to the sustainability of investing. This book aims to demystify sustainable investing for “average” investors. It uses a question-and-answer format to examine whether such investments are suitable investor portfolios. Each chapter also contains in-sightful and amusing quotes by investment professionals and others. The book has six chap-ters. Chapter 1 examines the changing investment landscape. Chapter 2 explores corporate social responsibility and the evolving responsibilities and obligations of a business. Chapter 3 focuses on the roles of social and religious values in shaping sustainable investing. Chapter 4 discusses the many investment options available to sustainable investors, such as stocks, bonds, mutual funds, and exchange-traded funds. Chapter 5 reviews the performance implications of sustainable investing. This re-search-oriented chapter investigates the intriguing question, “Can sustainable in-vestors have their cake and eat it too?” Finally, Chapter 6 ends by focusing on building a portfolio with a purpose.
Keywords:
sustainable investing,
ESG investing,
corporate social responsibility,
social values,
religious values,
stocks,
bonds,
mutual funds,
exchange-traded funds,
ETFs
Bibliographic Information
- Publisher:
- Oxford University Press
- ISBN:
- 9780197643815
- DOI:
- 10.1093/wentk/9780197643815.001.0001
