The Rise of ESG Investing: What You Need to Know

ESG (Environmental, Social, Governance) investing has grown from niche to mainstream, with global ESG assets expected to hit $53 trillion by 2025. Investors are increasingly prioritizing companies with strong sustainability practices, ethical labor policies, and transparent governance. This trend reflects a shift toward purpose-driven wealth building.

Financial performance often matches or exceeds traditional investments, debunking myths that sustainable means lower returns. Many ESG funds outperformed during market downturns due to their focus on long-term resilience. Major asset managers now offer ESG versions of popular index funds and ETFs.

To get started, research ESG ratings from providers like MSCI or Sustainalytics. Consider thematic funds focused on clean energy or social impact. Remember to still diversify – sustainability shouldn’t replace sound investment principles. Your financial advisor can help build an ESG-aligned portfolio matching your risk tolerance.

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