What are ESG investments and why are they trending?

ESG (Environmental, Social, and Governance) investments focus on companies that prioritize sustainable practices in these three key areas. Environmental factors involve how companies manage natural resources, social factors address issues like labor rights and community impact, and governance looks at company leadership and ethical practices. ESG investments are trending due to increasing awareness about climate change, social justice, and corporate accountability. Investors are increasingly seeking to align their portfolios with their values, while companies with strong ESG practices are believed to have better long-term growth potential and lower risk. This trend reflects growing demand for responsible and impact-driven investing.