Why is ESG investing so popular?

ESG investing has grown in popularity in recent years due to the influence of factors such as climate change and social justice on investors, according to the CFA Institute. The practice began in the 1960s and has gained traction in the investing world since. Here’s what each area of ESG means:

Is ESG investing soaring?

ESG Investing Is ‘Soaring.’ What Does It Mean? As the big UN Climate Conference known as COP27 wraps up in Egypt, a new PwC report found that Investors globally are embracing Environment, Social and Governance (ESG) investing on a massive scale – “seen soaring 84%” to $33.9 trillion by 2026 but what does that mean?

How will ESG investing change over the next decade?

According to Bank of America, ESG investing could rise by $15 trillion to $20 trillion over the next decade because of changing demographics. As millennials, GenZers, and the generations to follow step into investor shoes, they are increasingly likely to select their portfolios based on companies that measure up to ESG metrics.