Sustainable mutual funds are investment funds that focus on companies and projects committed to environmental, social, and governance ESG criteria. These funds aim to generate financial returns while promoting positive societal impact, such as reducing carbon emissions or improving labor practices. Investors in sustainable mutual funds typically seek to align their financial goals with their values. By choosing these funds, they support businesses that prioritize sustainability and ethical practices, potentially leading to long-term benefits for both the planet and their investment portfolios.