ESG investing

[klassicdoll]

Choosing where to put your money based on how well companies do in three areas, namely environmental, social, and governance, is called sustainable investing, or simply ESG investing. Because many people are interested in wanting their money to reflect their values, more and more are interested in this type of investing. According to studies, there are now trillions of dollars in ESG funds, which shows that these kinds of investments can do as well as the regular ones. However, like any other type of investment, ESG investing also has its own challenges, like the different definition of what "sustainable" means and some companies pretending to be greener than they really are, often called greenwashing. In the future, we can expect rules that are much stricter that cover companies on how they report their ESG efforts and a bigger focus on sustainability in the field of investment.

With this, how do you think ESG investing or sustainable investing will shape the future of financial markets?

 

[Suba]

If many companies implement ESG principles correctly, then business/investment will be in line with environmental, social, and governance sustainability. However, in practice, many business people do not pay attention to the environment and their employees or only accept wages below standard.

 

[Springtime]

I think sustainable investment is becoming popular. So far, I have only bought stocks of companies producing green energy. But I think companies should be more transparent in their ESG policies for investors' information.

 

[arunima25]

We ( my husband and I ) have invested some decent amount into energy sector which are advocating for green sustainable energy. They are doing good and look promising for the investors.
But you are right, many are promising to be green and that's a false promise.

 

[SilverLance]

ESG investing is likely to transform financial markets by driving capital toward sustainable practices, enhancing transparency and reporting, promoting long-term thinking, and reshaping investor priorities.