In the face of growing environmental and social challenges, a sustainable investment revolution is reshaping the financial landscape. This article delves into the principles of sustainable investing, the rise of Environmental, Social, and Governance (ESG) criteria, and the transformative impact of aligning profit with purpose in the world of finance.
Defining Sustainable Investing:
Sustainable investing, often referred to as socially responsible investing (SRI) or impact investing, involves making investment decisions that consider not only financial returns but also their impact on environmental, social, and governance factors.
Environmental, Social, and Governance (ESG) Criteria:
Environmental Factors: Investments are assessed based on their environmental impact, including considerations for carbon emissions, renewable energy use, and resource conservation.
Social Factors: Social responsibility involves evaluating a company’s impact on society, encompassing aspects such as labor practices, diversity and inclusion, and community engagement.
Governance Factors: Governance criteria focus on the quality of a company’s leadership, board structure, executive compensation, and overall corporate governance practices.
