BMO: A Step Further into Understanding Responsible Investing

Responsible and Sustainable investing can be used interchangeably. Responsible Investment is a term that covers multiple investment approaches related to environmental, social, and governance factors. Moreover, the UN supported Principles for Responsible Investment defines the responsible investment process to better manage risk and generate sustainable long-term returns.

Ethical investing is where investors put limitations on certain products, services, or sectors for investment. Furthermore, this could include limiting investments in sectors like tobacco, gambling, alcohol or weapons. However, This is only one of many approaches to a responsible investment strategy.