Sustainable investing, also known as socially responsible investing (SRI) or ESG investing, involves considering a company's environmental, social, and governance performance in addition to financial metrics when making investment decisions. It aims to promote sustainable development, mitigate risks, and generate long-term value. In recent years, sustainable investing has become a mainstream investment strategy in Europe. According to a report by the Global Sustainable Investment Alliance, assets managed under sustainable investment strategies in Europe reached €14.1 trillion in 2019, representing a 15% increase from the previous year. This growth can be attributed to several factors. Firstly, investors are increasingly aware of the environmental and social impact of their investments. Climate change, resource scarcity, and social inequality are pressing global issues that require urgent action. By investing in companies that prioritize sustainability, investors can contribute to positive change. Secondly, regulatory changes are driving the adoption of sustainable investing practices. The European Union has introduced the Sustainable Finance Action Plan, which aims to redirect capital flows towards sustainable investments and ensure that the financial sector considers sustainability risks. This regulatory framework provides a strong incentive for investors to incorporate ESG factors into their decision-making processes. Thirdly, there is growing evidence that sustainable investing can deliver competitive financial returns. Numerous studies have shown that companies with strong ESG performance tend to outperform their peers over the long term. This has dispelled the myth that sustainable investing requires sacrificing financial returns. The rise of sustainable investing presents opportunities and challenges for the European financial market. On one hand, it offers new investment opportunities in sectors such as renewable energy, clean technology, and sustainable infrastructure. These industries are expected to thrive as governments and businesses transition towards a low-carbon economy. On the other hand, sustainable investing requires rigorous ESG analysis and data disclosure. Investors need access to reliable information to evaluate companies' sustainability performance. This creates a demand for standardized ESG reporting frameworks and independent verification mechanisms. Overall, sustainable investing is reshaping the European financial market. As investors prioritize sustainability, companies are encouraged to improve their ESG practices. This shift towards greater sustainability is not only beneficial for the environment and society but also for long-term investment returns. By embracing sustainable investing, Europe can lead the way in creating a more sustainable and resilient financial system.