In what way do technological innovations affect sustainable investing?

Technological innovations significantly enhance the ability to collect and analyze Environmental, Social, and Governance (ESG) metrics, making the correct answer a clear choice. By leveraging advanced technologies such as big data analytics, artificial intelligence, and machine learning, investors can gather vast amounts of information about a company's sustainability practices and impact. This capability allows for more accurate assessments of a company's ESG performance, leading to informed investment decisions that align with sustainability goals.

Furthermore, enhanced data collection and analysis can reveal trends and insights that were previously difficult to identify. Investors can utilize this information to evaluate risks and opportunities related to sustainability, ultimately supporting the transition to more responsible investment practices. Therefore, technological innovations play a vital role in promoting transparency and accountability in investments, contributing to a more sustainable financial landscape.