Environmental, social, and governance (ESG) investing, also known as sustainable investing, is a strategy that focuses on investing in companies that prioritize ethical practices and exhibit strong environmental, social, and governance principles. ESG investors not only consider financial performance but also evaluate a company's impact on the world. The rise of ESG investing can be attributed to several factors. First, there is a growing concern about climate change and its impact on the planet. Investors are becoming more conscious of the need to support companies that are addressing environmental issues and promoting sustainability. Second, the demand for corporate social responsibility (CSR) has increased. Consumers and employees are increasingly demanding that companies take responsibility for their actions and contribute positively to society. ESG investors recognize the importance of investing in companies that prioritize CSR, as they are likely to have better long-term prospects and reputations. Furthermore, studies have shown that companies with strong ESG credentials tend to outperform their peers financially. Companies that prioritize sustainable practices are often better equipped to mitigate risks and adapt to changing market conditions. They are also more likely to attract capital from socially responsible investors, leading to a potential valuation uplift. The growing popularity of ESG investing has not gone unnoticed by financial institutions. Many banks, asset managers, and pension funds have launched ESG-focused investment products to cater to the demand. These products allow investors to align their financial goals with their values, offering a win-win situation. However, there are challenges and criticisms associated with ESG investing. One common concern is the lack of standardization in ESG metrics and reporting. Without clear guidelines, it can be challenging to compare companies' ESG performance and make informed investment decisions. To address this, there have been efforts to establish global ESG standards and reporting frameworks. In conclusion, ESG investing is on the rise as investors increasingly prioritize companies that exhibit strong environmental, social, and governance principles. This trend has been fueled by concerns about climate change, increased demand for corporate social responsibility, and the financial benefits associated with sustainable practices. As more financial institutions offer ESG-focused investment products, it is likely that this trend will continue to grow and reshape the financial landscape. Whether driven by profit or values, ESG investing offers a new approach to finance that seeks to make a positive difference in the world.