Sustainable (or ESG) investing: Are we on the same page?

THE world has seen a significant increase in investor interest in sustainable investing, also known as ESG (environmental, social and governance) investing.

Asset managers have responded to this interest and demand with a proliferation of ESG-labelled investment products. As investors, we find ourselves inundated by numerous terminologies.

Terms like sustainable investing (SI), responsible investing (RI), socially responsible investing (SRI) and impact investing, are often used interchangeably, but they're not the same. In the course of my work, I've witnessed how industry professionals and investors (myself included), grapple with the onslaught of ESG jargon. Hence, it should not come as a surprise that retail investors are equally confused, if not more so.