Common Terms and Definitions

These frequently used terms are often interchangeable and all use some or all of the techniques described above.  

  • Impact Investing - This can be a general term but it is also often used to describe very local or targeted investing, also known as community investing.
  • SRI (Socially Responsible Investing or Sustainable, Responsible, & Impact Investing) - Socially Responsible Investing was one of the first widely adopted names of this type of investing.  It is often associated with divestment and engagement but can include all four techniques referenced above.  Sustainable, Responsible, & Impact investing keeps the acronym but uses wording more specifically inclusive of the types of techniques used.
  • ESG (Environmental, Social, and Governance) Factor Investing - ESG refers to the social, environmental, and governance metrics used to evaluate companies that may provide long term financial benefits.
  • Sustainable Investing - This is a general term.
  • Green Investing - Often indicates a focus on environmental concerns above other factors.
  • Values Based Investing - Often indicates tailoring of investments to the clients unique values.  This term is also used for investing tailored to clients' religious values. 
  • Mission Driven Investing - Often in reference to organizations and institutions aligning their investments with the mission and values of the organization.