ESG and Impact Investing: A Path to Purposeful Profits
In a world increasingly defined by social and environmental challenges, investors are seeking ways to align their financial goals with broader societal and environmental objectives. This has led to the rise of two interconnected investment paradigms: Environmental, Social, and Governance (ESG) investing and Impact investing. Let's delve into what these terms mean, their significance, and how they're shaping the future of finance. Understanding ESG Investing... ESG investing evaluates a company's performance and potential based on its environmental, social, and governance factors. Here's a breakdown of each element: Environmental Factors: This encompasses a company's impact on the environment, including its carbon footprint, energy efficiency, waste management practices, and resource usage. Investors assess how well a company manages its environmental risks and its efforts towards sustainability. Social Factors: Social considerations examine a company's relati...