Environmental, Social, and Governance (ESG) Investing
Environmental, Social, and Governance (ESG) Investing refers to the practice of considering a company's environmental impact, social responsibility, and governance practices when making investment decisions. Investors look for companies that prioritize sustainability, ethical labor practices, and transparent management, aiming to support businesses that contribute positively to society and the planet.
ESG criteria help investors assess risks and opportunities beyond traditional financial metrics. By focusing on these factors, investors can align their portfolios with their values, potentially leading to better long-term financial performance while promoting responsible corporate behavior. This approach is increasingly popular among individuals and institutions alike.