Sustainable investing has become a buzzword in the financial world, but what does it actually mean?
Environmental, Social, and Governance (ESG) investing criteria
At its core, sustainable investing involves making investment decisions based on three key factors: Environmental, Social, and Governance (ESG) criteria. These criteria help investors evaluate companies not just on their financial performance but also on their impact on the planet and society.
This is essential in the modern world. Think about it for a second. With growing human impact on the planet it is essential that we as a responsible investor support companies that go an extra mile towards getting a cleaner growth that is sustainable for both the company and the planet.
Environmental (E) criteria consider how a company performs as a steward of nature. This includes their efforts to reduce carbon emissions, manage waste, and conserve natural resources. Companies that score high on environmental criteria are typically those that actively work to mitigate climate change and reduce their ecological footprint.
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