ESG vs SRI

What do they stand for?

ESG and SRI are two different investment strategies that investors can use to allocate their money. ESG stands for environmental, social, and governance, while SRI stands for socially responsible investing. Both of these strategies have their pros and cons, so it is important for investors to understand the difference before deciding which is right for them.

ESG investing vs SRI investing

ESG investing focuses on companies that are environmentally and socially responsible. This means that the company is working to reduce its environmental impact, treat its employees fairly, and promote good governance practices. ESG investors believe that these companies will be more successful in the long run, because they are sustainable and have a positive social impact.

SRI investing is focused on companies that have a social mission. This could be anything from producing sustainable products to donating a portion of their profits to charity. SRI investors believe that these companies will be more successful in the long run, because they are making a difference in the world.

Which one of the two is more rewarding?

Both ESG and SRI investing can be rewarding, but it is important to understand the risks involved. ESG investing can be more volatile, because it is focused on companies that are still growing. SRI investing can be less volatile, but there is a greater chance of losing money if the company does not succeed.

So, which investment strategy is right for you? That depends on your priorities and risk tolerance. If you care about the environment and social justice, then ESG investing is a good option. If you want to make a difference in the world, then SRI investing is a good option. However, both strategies involve risk, so it is important to do your research before deciding which is right for you.