Sustainable investing is the practice of investing in companies and funds that prioritize environmental, social, and governance issues alongside financial performance.
The concept of sustainable investing is rooted in the belief that companies that prioritize ESG issues will ultimately be more successful in the long run.
Sustainable investing has become increasingly popular in recent years, with more and more investors seeking to align their investments with their values.
ESG investing can take many forms, from investing in companies that prioritize sustainable business practices to investing in funds that focus on specific ESG issues, such as renewable energy or gender diversity.
There are a growing number of sustainable investing products available to investors, including mutual funds, ETFs, and separately managed accounts.
One of the challenges of sustainable investing is defining what qualifies as sustainable. Different investors and organizations may have different definitions and criteria for evaluating ESG issues.
Despite this challenge, sustainable investing has gained significant traction in the finance industry and is expected to continue to grow in the coming years.
Sustainable investing can offer financial benefits in addition to social and environmental benefits, as companies that prioritize ESG issues may be better positioned for long-term success.