What is the largest sustainable investment strategy globally?

The largest sustainable investment strategy globally is negative screening. This strategy involves excluding certain sectors, companies, or practices from investment portfolios based on ethical, environmental, or social criteria. By focusing on avoiding investments in areas such as fossil fuels, tobacco, or companies with poor labor practices, negative screening allows investors to align their portfolios with their values while also responding to growing regulatory and consumer pressures for responsible investing.

Negative screening has gained traction due to its straightforward implementation and its ability to cater to the risk preferences of conservative investors who may want to avoid industries perceived as harmful. This strategy has broad appeal across various types of investors, making it one of the most widely utilized approaches in sustainable investing globally.

While other strategies like ESG integration and impact investing have their place and significance, negative screening remains the most prevalent due to its simplicity, effectiveness in aligning with ethical considerations, and its established history in the investment community.