ESG (Environmental, Social, and Governance) investing integrates non-financial factors into investment decisions to promote long-term sustainability and ethical outcomes. Modern portfolios increasingly adopt ESG to align with global climate goals, social responsibility, and sound corporate governance. Investors use ESG ratings to identify risks like pollution, labor practices, and board diversity that could impact financial performance. Studies show ESG-aligned portfolios can offer competitive returns with reduced volatility. Moreover, growing regulatory support and consumer demand have made ESG investing a core consideration rather than a niche approach. It’s reshaping capital flows, encouraging transparency, and redefining value beyond traditional financial metrics in both retail and institutional investment strategies.

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