ESG investing or Environmental, Social, and Governance investing refers to an investing approach that emphasizes a company’s impact on factors outside of just its sphere of business and the traditional risk and return analysis. This approach identifies companies that some investors may find interesting because they’re striving to be good for humanity. You might also hear about similar types of investing like socially responsible investing, sustainable investing, values-based investing, and impact investing. But is it possible to invest responsibly without sacrificing profits? Let’s look at how ESG works and its performance over time.
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