What investment approach considers sustainability criteria when evaluating opportunities?

The correct choice is socially responsible investing (SRI) because this investment approach explicitly integrates environmental, social, and governance (ESG) considerations into the investment decision-making process. SRI involves evaluating investment opportunities based not only on financial performance but also on their impact on society and the environment. Investors who adopt SRI seek to generate competitive financial returns while making a positive societal impact, aligning their portfolios with their ethical values.

This approach has gained significant traction as investors increasingly recognize the importance of sustainability in investment decisions, driven by growing awareness of climate change, social justice issues, and corporate governance practices. By incorporating these criteria, SRI seeks to encourage companies to adopt more sustainable practices and policies, thus contributing to a better future while pursuing financial goals.

In contrast, speculative investing focuses primarily on maximizing short-term gains through high-risk strategies without considering sustainability or ethical implications. A divestment strategy involves the withdrawal of investments from specific sectors or companies typically due to ethical concerns, but it does not inherently involve the ongoing evaluation of future investment opportunities based on sustainability criteria. High-frequency trading is a completely different approach that relies on algorithmic trading to exploit small market inefficiencies, without regard to ethical considerations or the social impact of investments.