The CFA Institute, Principles for Responsible Investment (PRI), and the Global Sustainable Investment Alliance (GSIA) have collaborated to release a guideline called “Definitions for Responsible Investment Approaches.” which aims to standardize sustainable investment terminology to enhance communication within the investment industry and reduce the risk of greenwashing. The guideline was developed in response to the growing interest in environmental, social, and governance (ESG) issues, which has led to an increase in investment products and practices with unclear or inconsistent terminology. The resource focuses on key responsible investment approaches, providing definitions, explanations, and guidance for terms such as Screening, ESG Integration, Thematic Investing, Stewardship, and Impact Investing. The organizations encourage investors, regulators, policymakers, and market participants to adopt these definitions for greater consistency in the industry.
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