The world of finance is undergoing a significant paradigm shift as environmental, social, and governance (ESG) issues take center stage in investment decision-making. ESG investing, also known as sustainable investing, is a strategy that incorporates a company's environmental, social, and governance practices into the investment analysis process. ESG factors have gained immense importance for both institutional and individual investors. With climate change concerns, increasing income inequality, and corporate malpractices making headlines, investors are seeking more than just financial returns. They want to align their investments with their values and support companies that prioritize sustainability, social responsibility, and ethical standards. One key driver of the rise of ESG investing is the growing awareness about the potential risks that businesses face due to their environmental and social practices. Climate change, for instance, poses significant threats to companies operating in sectors susceptible to physical and regulatory risks. Investors now recognize that companies with robust climate change strategies are better positioned to mitigate these risks and generate long-term value. As a result, there is an increasing demand for investments in companies with strong environmental track records. Similarly, social factors are becoming critical in investment decisions. Employee relations, diversity and inclusion, and customer satisfaction are just a few examples of social factors that have an impact on a company's overall performance. Investors are now acknowledging that companies with strong social practices tend to attract and retain top talent, enhance their brand reputation, and foster better customer relationships. Lastly, governance practices are now a key area of focus for investors. Corporate governance, including board structure, executive compensation, and shareholder rights, ensures transparency, accountability, and effective decision-making within a company. Companies with strong governance practices tend to outperform their peers and are less likely to face scandals and controversies. ESG investing goes beyond traditional financial analysis by incorporating these non-financial factors into investment decision-making. It allows investors to incorporate their values into their portfolios without compromising financial returns. The growing demand for ESG investments has consequently led to the development of a wide range of sustainable investment products, including ESG-themed mutual funds, ETFs, and green bonds. In conclusion, the rise of ESG investing signifies a new era in finance, where companies are no longer solely evaluated based on their financial performance. Investors are increasingly expecting companies to demonstrate their commitment to sustainability, social responsibility, and good governance. As ESG investing gains momentum, it is likely to reshape the investment landscape, paving the way for a more sustainable and responsible financial sector.