What is ESG Investing?
ESG investing, also known as sustainable investing, is a strategy used by investors to consider a company’s environmental, social, and governance (ESG) practices to make investment decisions. This process involves taking into account the potential risks and opportunities of a company’s ESG practices and analyzing how they might impact the long-term financial performance of an investment. The goal of ESG investing is to invest in companies that are socially responsible, environmentally friendly, and have good governance practices.
ESG investing is a growing trend in the investment world, and more and more investors are becoming interested in using an ESG strategy. According to a report by the Global Sustainable Investment Alliance, sustainable investments grew to more than $30 trillion worldwide in 2018, up from $23 trillion in 2016. This growth is a reflection of the increasing importance of corporate social responsibility and the demand for companies to act more sustainably.
