Is ESG Investing a Good Approach? Perhaps, But There Are Pitfalls

Investing in companies that are leaving a positive impact on the world is something just about all of us can get behind. After all, who wouldn't want to back businesses that are driving us toward a better future?

In recent years, ESG, or environmental, social and (corporate) governance investing has taken off, largely due to high investor demand.

This approach, while still focusing on fundamental analysis, places an extra emphasis on a business' impact on the environment and social issues as well as ethical corporate decision-making.

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Source Fool.com