ESG investing has become an essential part of portfolio strategy. ESG stands for three pillars of responsible investing. By analyzing ESG metrics, investors evaluate long-term sustainability.
**Environmental factors**
This includes investment in clean technology. Companies like Tesla, Ørsted, and NextEra Energy are driving green innovation.
**Social factors**
Social responsibility covers supply chain ethics. Firms like Microsoft, dalata hotel stock Unilever, and Johnson & Johnson are recognized for health and safety commitments.
**Governance factors**
Strong governance means ethical decision-making. Examples include Nestlé, Procter & Gamble, and Apple maintaining clear reporting.
**Benefits of ESG investing**
– Encourages long-term growth.
– Lower reputational risk.
– Meets global standards.
**Conclusion**
ESG investing is not just a trend. By including green innovators, socially responsible firms, and transparent leaders, investors build sustainable portfolios.
