A type or approach of investing that builds on the conventional approach (that is limited to risks of investment selection and portfolio risk management) and sustainability benefits (achievement of social and environmental gains along with financial returns). It further recognizes both the power of investments to impact social, financial, and environmental systems, and the complexity of modern day systems.
This style of investing aims also to support and enhance the health and stability of the social, financial, and environmental systems (all of which are fundamental systems) which are considered key to long-term returns. These systems have to be well maintained and strengthened while an investment is till able to perform competitively or otherwise to an acceptable level.
System-level investing incorporates such system-related considerations and factors to better align the present-day investments with a society’s long-term goals.
