How is ESG investing changing stock markets?

ESG (Environmental, Social, Governance) investing is reshaping stock markets by pushing companies to be more transparent, ethical, and sustainable. Investors are no longer just looking for profits; they want to invest in businesses that care about climate change, diversity, and good governance. Companies with strong ESG practices often attract more capital and enjoy better reputations. Stock exchanges in India and globally are adding ESG indices and requiring more disclosures. As a result, ESG factors are becoming important in stock valuations. Over time, firms that ignore ESG may face investor backlash or regulatory penalties. ESG investing is helping drive a shift toward long-term, responsible investment strategies rather than short-term gains.