Green and ESG Funds: Investing for Profit and Planet
In recent years, a growing number of investors have sought ways to align their financial goals with their values. This shift has given rise to green and Environmental, Social, and Governance (ESG) funds, which aim to deliver both profit and positive impact. Here’s a comprehensive look at what these funds are, how they work, and why they’re worth considering for your portfolio. What Are Green and ESG Funds? Green Funds are investment vehicles that focus on companies and projects dedicated to environmental sustainability. These funds may invest in renewable energy, clean technology, waste reduction, and other eco-friendly initiatives. ESG Funds take a broader approach by considering a company’s performance in three key areas: Environmental – Efforts to combat climate change, reduce carbon emissions, and promote sustainability. Social – Employee relations, diversity, community impact, and customer satisfaction. Governance – Corporate governance, transparency, ...