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Investing based on Environmental, Social, and Governance factors - not just profits.
Why It Matters
ESG investing lets you put your money where your values are. Don't want to own oil companies? There's an ESG fund for that. Want to support gender diversity on boards? There's a fund for that too. Whether ESG funds outperform is debated - some argue good governance leads to better returns; others say you're limiting your options. Either way, ESG assets have grown to $35+ trillion globally.
Key Points
- E = Environmental (climate, pollution, renewable energy)
- S = Social (labor practices, diversity, community impact)
- G = Governance (executive pay, board diversity, shareholder rights)
Related Terms
Common Questions
Investing based on Environmental, Social, and Governance factors - not just profits. ESG investing lets you put your money where your values are. Don't want to own oil companies? There's an ESG fund for that.
ESG investing lets you put your money where your values are. Don't want to own oil companies? There's an ESG fund for that. Want to support gender diversity on boards? There's a fund for that too. Whether ESG funds outperform is debated - some argue good governance leads to better returns; others say you're limiting your options. Either way, ESG assets have grown to $35+ trillion globally.
E = Environmental (climate, pollution, renewable energy)
S = Social (labor practices, diversity, community impact)
G = Governance (executive pay, board diversity, shareholder rights)