When discussing investments with clients we often refer to Sustainable Investing vs. Traditional Investing.
Many individuals ask us the difference between the two so here we explain them:
Sustainable Investing
This is where advisors and investors make investment choices which aim to achieve both positive financial returns while also benefitting long-term environmental or social values. The investment approach will take into account environmental, social, and corporate governance (ESG) factors when making investment choices. These will not be solely made on return alone, instead, sustainable investing ensures firms aren’t judged solely on short-term financial gains but on a broader picture of what and how they positively contribute to the world around us.
The costs and charges associated with investing in this way may be higher when compared with making traditional investment choices.
Traditional Investing
Traditional investing will usually focus primarily on investment return and will not place significance on environmental, social and corporate governance (ESG) factors. Investment choices will not necessarily be ‘bad for the world’ however ethical considerations and the impact of the investment on the world around us will not necessarily be a central consideration.
The costs and charges associated with investing in this way may be lower when compared with making sustainable investment choices.
Your investment preferences will be individual and there is no ‘right answer’ to whether you should invest sustainably or traditionally. Our responsibility is to discuss with you the options and the impact of your investment choices based on your preferences.
If you are interested in investing sustainably, you should talk to us about our sustainable investing strategy.
Please get in touch with us to discuss in more detail.
*Please note: Your capital is at risk. The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. The information contained within this article was accurate at the date of publication and is subject to change. Publication date: 28/08/2026.