Socially responsible investments have seen a 33% increase over the past 4 years and now total over $8 trillion in assets. Investors are interested in more than just a financial return - they want their investments to also have a positive impact on the world around them.
According to Investopedia, more and more companies and funds are reacting to the increase in demand and we're seeing a rise in products available.
So what's the difference?
ESG investing (Environmental, Social and Governance) refers to the three central factors in measuring the sustainability and ethical impact of an investment in a company or business.
SRI investing (Socially Responsible Investing) refers to a strategy of investing only in companies according to a specific and ethical guidelines and eliminate such areas as alcohol, tobacco, environmental harm, etc.
Impact investing refers to investments made only when there will be a positive impact.
You can further detail on the different types of investments here.