ESG investing is an investment approach that takes into account environmental, social, and governance factors in addition to financial metrics. The primary goal of ESG investing is to create a positive impact on society and the environment, while generating financial returns. This investment approach considers factors such as a company’s impact on the environment, labor practices, corporate governance, and community involvement, in addition to traditional financial indicators.

ESG investing is becoming increasingly popular as investors become more aware of the potential benefits of investing in companies that are socially and environmentally responsible. This approach can lead to better long-term financial performance, as companies that prioritize ESG factors are often better equipped to manage risks and adapt to changing market conditions. Moreover, companies that are mindful of ESG factors are more likely to attract customers who value sustainability and ethical practices.