This document discusses different approaches to responsible and sustainable investing. It presents a table that illustrates the conceptual differences between approaches in terms of their investment profile, financial returns, and consideration of environmental, social and governance factors. The approaches range from those that aim to deliver competitive financial returns while mitigating ESG risks and pursuing opportunities, to those focused solely on impact with limited regard for financial returns.

1. RESPONSIBLE SUSTAINABLE IMPACT
Delivering competitive financial returns
Mitigatingenvironmental, social and governance(ESG)risks
Pursuingenvironmental, social and governanceopportunities
Focusingon measurable high-impact solutions
Competitivefinancial returns
Below market financial returns
Limited or no regard for
environmental, social
or governance
practices
FINANCIALONLY IMPACTONLY
Mitigaterisky
environmental,social and
governance practices in
order to protect value.
Adopt progressive
environmental, social and
governance practices that
may enhance value
Addresssocietal
challenges that generate
competitive financial
returns for investors
Addresssocietal societal
challenges which may
generate a below
market financial return
for investors.
Addresssocietal societal
challenges that requirea
below market financial
return for investors
Addresssocietal challenges
that cannot generate a
financial return for investors
INVESTMENT
PROFILE
All forms of responsible investment, are ultimately related to portfolio construction, the table below illustrates conceptual differences between approaches.
Source: Organization for Economic Co-operation and Development (OECD)