ESG investing focuses on environmental, social, and technology investment governance factors. It integrates values into financial decisions.
**What ESG means**
– **Environmental:** Climate impact, renewable energy use, carbon footprint.
– **Social:** Employee treatment, diversity, community engagement.
– **Governance:** Accountability in leadership.
**Examples of ESG-friendly companies**
– Though governance debated.
– Microsoft: strong sustainability goals.
– Consumer goods leader.
**Benefits of ESG investing**
– Support ethical companies.
– Potential for strong returns.
– Market trend accelerating.
**Risks**
– Definitions vary widely.
– Greenwashing risks.
– Trade-offs exist.
**Conclusion**
ESG investing is a fast-growing trend. By focusing on environmental, social, and governance standards, investors combine profit with purpose.
