What is one of the primary goals of sustainable investing?

One of the primary goals of sustainable investing is to address social and environmental challenges. This approach focuses on generating long-term value by considering how investments impact society and the environment. Sustainable investing integrates environmental, social, and governance (ESG) factors into the investment process, aiming to create a positive impact while also seeking financial returns. By prioritizing these factors, investors can contribute to solutions for pressing global issues such as climate change, inequality, and social justice, which aligns with the broader purpose of sustainable development.

In contrast, maximizing short-term profits does not align with the values of sustainable investing, which favors long-term considerations over immediate financial gains. Enhancing portfolio diversification is a common investment strategy, but it is not specifically tied to the objectives of sustainable investing. Similarly, reducing tax liabilities is a financial strategy that does not inherently address the social and environmental goals that define sustainable investing. Hence, focusing on social and environmental challenges is at the heart of sustainable investing's mission.