What does sustainable investing mean?
Sustainable investors avoid certain sectors or invest in companies whose business activities have a particularly positive influence. Investment decisions are based on evaluations of these companies’ conduct and influence with regards to environmental, social and governance factors. The resulting “ESG” score shows which companies meet the highest ethical, environmental and governance standards in their sector.
Companies whose activities promote climate change, exploit natural resources, attack the ozone layer or have a negative impact on biodiversity are avoided. Instead, investors prefer companies whose activities contribute towards the development of environmentally friendly technologies, products and services.
Companies that are involved in controversies over human rights, breach employment rights or whose activities threaten people’s health or security are avoided. There is a preference for companies whose activities contribute towards improving people’s quality of life.
Companies that do not act in the interests of their shareholders or breach the principles of ethical business conduct are avoided. Investors instead prefer companies with exemplary corporate governance practices.
VZ has committed to the United Nation’s Principles for Responsible Investment (UN PRI): by following the six rules for responsible investment, we aim to help build a more sustainable global financial system.