Environmental, social, and governance (ESG) investing is an investment approach that considers environmental, social, and governance factors in addition to financial factors when making investment decisions.

ESG investors seek to invest in companies that prioritize sustainable practices, social responsibility, and ethical leadership. This type of investing takes into account factors such as a company’s impact on the environment, its treatment of employees, and the quality of its corporate governance.

ESG investing aims to achieve both financial returns and positive social and environmental outcomes.