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3 industry groups unite to define responsible investing terminology

To bring more consistency to discussions about sustainable finance in the money management industry and prevent greenwashing, the CFA Institute, the Global Sustainable Investment Alliance and the Principles for Responsible Investment published updated definitions for five terms relating to responsible investing.

In a Nov. 1 report, the three organizations gave updated definitions with explanations for the terms screening, ESG integration, thematic investing, stewardship and impact investing. They also provided guidance on how to use the terms.

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