ESG Investing: Investing For Change

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Environmental, social, and governance (ESG) investing is gaining mainstream momentum, with investors and institutions increasingly integrating ESG considerations into their financial analysis and the stocks they select. A recent global research study by CFA Institute found that 76% of institutional investors and 69% of retail investors are interested in ESG investing. A 2019 survey by the Morgan Stanley Institute for Sustainable Investing found that interest in sustainable investing among the general population of investors jumped
from 71% in 2015 to 85% in 2019. The trend is even more pronounced among millennial investors. The same study found that 95% of millennials were interested in sustainable investing. What is ESG investing? In a nutshell, an ESG investing strategy directs capital to companies that meet strict standards in the realms of environment, social, and governance. The following chart breaks down what goes into each ESG factor: Corporations are rated by third-party, independent