What is ESG?
ESG stands for Environmental Social Governance. These are factors that investors use to measure the societal and sustainable impact of their investment in a particular company.
Why is ESG investing growing so?
So, increasingly, investors are using ESG factors as one of the more important determinants for why they will invest in a particular company. And the reason why is that companies that focus on ESG may deliver better returns, they may lower risk, and they also may demonstrate that the companies have better or good management principles. Now, a recent report said that the growth of investments in ESG funds could grow by $20 trillion over the next two decades. That would be the equivalent of the S&P index today.
