ESG investing focuses on responsible corporate behavior. It balances profit with responsibility.
**What ESG means**
– **Environmental:** Climate impact, renewable energy use, carbon footprint.
– **Social:** Fair labor practices.
– **Governance:** Fair executive pay.
**Examples of ESG-friendly companies**
– Leader in EV adoption.
– Carbon negative plans.
– Respected ESG record.
**Benefits of ESG investing**
– Support ethical companies.
– Potential for strong returns.
– Growing demand for ESG funds.
**Risks**
– Difficult to measure ESG impact.
– Companies exaggerate sustainability.
– ESG filters limit investment options.
**Conclusion**
ESG investing is important for global sustainability. By focusing on environmental, social, and credit acceptance market analysis governance standards, investors support ethical growth.
