ESG – environmental, social and governance-based investing framework is a cornerstone of defining good quality low risk businesses. Such businesses are expected to create long-term wealth for investors by compounding their profits.
Living a healthy lifestyle in a holistic sense has become one of the defining traits of our times. Interestingly, this idea is not just restricted to the ways we live. The idea has found huge acceptance even in the world of investments. Today, from sustainable living we are following the trend of sustainable investing. Sustainable investing is catching up across the world. Investors want to own businesses which are inherently less risky.
ESG – environmental, social and governance-based investing framework is a cornerstone of defining good quality low risk businesses. Such businesses are expected to create long-term wealth for investors by compounding their profits. High ESG score of a company typically indicates a business which is conducted with utmost consideration for environmental protection, nurturing societal values and protecting stakeholders’ interest. Such businesses follow high governance standards and transparency. Going forward, the importance of ESG-focused investing will receive further fillip. As interest rates come down structurally, investors are expected to allocate more money to equities in the quest for returns.
