What is a key goal of sustainable investing?

The key goal of sustainable investing is to address social and environmental challenges. This approach integrates environmental, social, and governance (ESG) factors into investment decisions, aiming to generate both financial returns and positive societal impact. By considering how companies manage these challenges, investors can support businesses that contribute to sustainable development, such as those actively reducing carbon footprints or promoting social equity.

Sustainable investing seeks to align financial goals with broader social and environmental objectives, recognizing that companies that are sustainably managed are often better positioned for long-term success. This holistic perspective encourages investors to engage with businesses not just in terms of profitability, but also regarding their impact on society and the planet.