A Beginner’s Guide to Sustainability & ESG

What it really means — and what you’ll find across this website.

Sustainability is fast becoming one of the most overused and misunderstood words in modern finance. It’s become a real buzzword for governments and corporations alike, and the investment industry is becoming awash with sustainable products. Underneath the hype, it is about a simple idea:

Sustainability is about creating an eco-system that can keep running for the long term, an eco-system built for nature, economics and society.

Sustainability is about the long game, sustainable investing is about ensuring money flows to get us there.

Sustainable-Money is about helping everyone from individual savers to professional investors make sense of the ever changing landscape. In this introductory article, we’ll cover some of the key principles we will study in detail throughout this website.

1. What ESG Actually Is (and Isn’t)

ESG is thrown around a lot these days and can cause a lot of confusion as to what it actually means. So let’s provide some clarity to this acronym:

What ESG isn’t

Political ideology
Moral purity
A guarantee that something is “green”

What ESG actually is

A framework for assessing risk and behaviour
A tool to help understand how a company manages environmental, social and governance issues
A tool for investors to understand how a company manages risk in relation to sustainability

ESG covers three areas:

Environmental

Climate change, carbon emissions, energy use, biodiversity, pollution, resource efficiency.

Social

Workers’ rights, community impact, diversity, health & safety, supply chain ethics.

Governance

How a company is run, or governed. In particular, it’s about transparency of the board structure, executive pay, shareholder rights etc.

These are the three pillars of the now famous acronym, ESG.

2. Why Sustainability Matters in Finance

Currently, sustainability is still seen as a “nice to have”, or perhaps a talking point for investors who are conscious about the environment. But the reality is, sustainability runs much deeper in finance and is now starting to shape its very foundations, and here’s why:

Climate Risk IS Financial Risk

As climate change speeds up, the physical manifestations of this such as storms, flooding, droughts and all increase in both frequency and intensity. Finance cannot ignore this and must factor this in.

Regulation is Changing the Playing Field

Regulators are trying to get ahead. That’s why we’re seeing a plethora of new acronyms coming out such as TCFD, ISSB, SFDR, SDR, Green Taxonomy etc. Disclosure, transparency and accountability are ever increasing.

Markets are changing

The reality is, as climate risk increases and the rules of the game change as new regulation comes in, so then does the entire market. New technology and renewable energy are at the forefront, and government regulation and consumer appetite are changing the flow of money in the market and is only flowing more towards sustainability.

Going green is not just about sleeping better at night, it’s the smart move to make with your money.

3. What Readers Will Find on This Website

Sustainable-Money was created to help individuals, investors and professionals make sense of sustainability and how it relates to your personal finance. We’ll provide guidance on investing and sustainability that’s both practical and accessible.

Here’s what you can expect.

Clear, Practical Guides to Personal Finance

All finance starts with a solid foundation in, a base from which you can build. You’ll fund guides and latest opinion pieces covering:

Eliminating debt
Understanding risk
Saving for retirement
Portfolio construction basics
Global tax wrappers (ISAs to IRAs, and SIPPs to 401ks)
How to actually start investing

These pieces form the foundation of money management and will provide a clear route for achieving long-term financial wealth.

Deep Dives Into Sustainable Investing

For those who want to understand how finance is helping drive the green transition, and want to get under the bonnet of the sustainability machine, we’ll cover topics such as:

ESG funds vs traditional funds
Green washing – what it as and how not to fall victim
Impact investing
ESG scores, SFDR articles and SDR labels
Climate risk (physical vs transition)
Building a climate resilient portfolio
Sustainable banking
And much more…

We’ll look at this through a pragmatic, undogmatic way, that can drive profit and benefit the planet.

Policy, Regulation and Global Trends

We monitor and comment on global regulation shaping the playfield, making it user friendly. Whether it’s SDR in the UK or SFDR in the EU, you’ll fund:

What the rules mean
Why they matter
Who it affects
And what you need to do about it

Opinion and Vision

At Sustainable-Money, we believe that the green transition should drive higher living standards, not deteriorating ones. We look at how governments and companies are shaping the world and give our honest thoughts including:

How Capitalism can and must drive the green transition
The limits of green finance
The challenge of moving nations to 100% renewable resources
Discussion on a pragmatic green transition
Government policy changes – the good, bad and ugly

These are not ideological pieces, we take common sense and sound reasoning to put forward pragmatic opinions.

4. Who This Website is for

Sustainable-Money was built for for anyone who wants to understand how their finances can make the world a better place including:

Beginners to learn the foundations of personal finance
Intermediate readers who want clarity and structure
Professionals looking for discussion on the latest trends
Anyone trying to navigate the ever changing ocean of ESG, climate risk and green investing

Our ethos is simple:

Practical, honest and accessible advice – for a world that’s changing – FAST.

Final Thoughts

Sustainability is no longer a niche for specialised professionals. It’s a defining feature of the economy, and governments, companies and investors are adapting.

This website helps you understand this shift, so that you can make informed financial decisions that will shape your future,

Whether you just want to know the basics or be part of the conversation as to where the future is going, you’ve come to the right place.