(Fast Company) Faced with the ongoing calamity of climate change, both seasoned investors and those new to the market are increasingly embracing funds with more sustainable stocks. They’re favoring companies that take action to address the climate crisis and other environmental and social issues, like resource conservation, biodiversity, and human rights—rather than continuing to fund fossil fuel activities.
So-called ESG investing (Environmental, Social, and Governance) has grown exponentially over the past few years, and 2021 was no exception. The pandemic and climate-friendly federal investments helped boost the momentum, showing the financial appeal of sustainable funds for investors, even those focused more on financial return than impact. While ESG growth will likely continue, the rate of acceleration may hinge on the government’s ability to entice investors to ESG through regulatory and legislative action.
Read more here.