Along with the range of names for sustainable investing, several acronyms—such as “ESG,” “SRI,” “SDG” and “PRI”—have also emerged in this space. For an already acronym-loving industry, the result has been an almost head-spinning number of acronyms and terms within the sustainable investing universe. The result is a wake of confusion—even among proponents of sustainable investing. A 2017 study found that even among investment firms that actively practice sustainable investing, more than half (56%) said that there was internal confusion about ESG terminology within their organizations.1
1. Source: State Street Global Advisors, “ESG Institutional Investor Survey: Performing for the Future,” 2017.