Kill 2 Birds With 1 Stone Using the ESG Investing Strategy
ESG investing, sometimes referred to as socially responsible or sustainable investing, has grown in popularity over the years. ESG stands for environmental, social, and corporate governance, and it's used to help investors examine companies through a different lens.
Traditionally, what mattered most was a company's financial performance, but ESG investing looks beyond that. That's not to say ESG investors ignore financial performance altogether, but it's not the only factor used in making investing decisions.
The environmental aspect of ESG focuses on a company's environmental impact with an emphasis on its role in climate change -- not only with its current operations, but also its commitment to operating more "green" in the future. This metric is especially useful when examining companies with high energy use or pollution.
Source Fool.com
