Latest Trends in ESG Investing
Do you know what Environmental, social and corporate governance (ESG) investing focuses on? Well, it focuses on companies that support environmental protection, social justice, and ethical management practices. Like any other investor, ESG investors also value returns. The difference is that they do not love profits more than supporting companies that fit into their ethical functioning standards.
It's important to understand that different ESG
investors follow different trends in ethical investing. It means an ESG
investor focused on the environment would prefer to put their money into
alternative energy and green companies. In contrast, the one focusing on social
justice will prefer investing in companies that promote diversity, economic
equality, and other human rights issues.
The upcoming investors wish to invest in things that
they believe in and support. Well, knowing about ESG investing can help you better understand what these investors
are looking for. In this blog, we bring to you the three latest trends in ESG Investing to consider!
Latest Trend #1: Equality in Payscale
As per a recent survey shared, women in the U.S earn
about 78% of what men earn for doing the same job profile.
Many companies' measures to show themselves in good
books represent a buying opportunity for ESG investors. So people who think
that the problem of the gender way gap does exist and wants to do something
about it have opportunities to invest in companies that have displayed a
priority of being at the forefront of solving is an issue.
Latest Trend #2: Change in Climate
Scientists believe that climate change is on the rise, and humans are responsible for the same at some point. Developed countries also have not yet been able to control and overcome this issue of climate change. Climate change serves as an opportunity for ESG investors to work for this cause and as well make profits. Thus ESG investors who think that climate change can be controlled with climate change legislation should research the potential alternative energy investments.
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