In recent years, there has been a significant shift in the way investors approach their investment decisions. Traditional factors such as financial performance and risk are no longer the sole drivers behind investment choices. Instead, a new era of investing has emerged – sustainable investing. Sustainable investing, also known as socially responsible investing, takes into account environmental, social, and governance (ESG) criteria when selecting investments. It aims to generate long-term financial returns while also considering the impact of investments on society and the environment. This new approach to investing has gained traction among both individual and institutional investors. According to a report by the Global Sustainable Investment Alliance, sustainable investing assets reached $35.3 trillion globally in 2020, a 15% increase compared to 2018. One of the main drivers behind this growing trend is the recognition that companies with strong ESG practices tend to outperform their peers in the long run. Numerous studies have shown a positive correlation between ESG performance and financial performance. Companies that excel in areas such as resource efficiency, employee well-being, and board diversity are more likely to be financially resilient and deliver sustainable growth. Moreover, sustainable investing is appealing to investors who want to align their values with their investment decisions. By investing in companies that promote sustainability and social responsibility, investors can contribute to positive change and address global challenges such as climate change, inequality, and human rights. Financial markets have responded to this shift by offering a wide range of sustainable investment products. Investors can now choose from sustainable mutual funds, ETFs, green bonds, and impact investing strategies. These products not only provide financial returns but also allow investors to make a positive impact on society and the environment. Governments and regulatory bodies have also recognized the importance of sustainable investing. In Europe, for instance, the European Commission has launched the EU Sustainable Finance Action Plan, which aims to channel capital towards sustainable investments and create a more sustainable financial system. While sustainable investing has gained significant momentum, challenges still lie ahead. One of the main challenges is the lack of standardized ESG metrics and reporting. Investors often struggle to compare and evaluate the ESG performance of different companies, making investment decisions more challenging. Despite these challenges, sustainable investing is here to stay. As more investors prioritize sustainability and demand transparency, financial markets will continue to evolve to meet these demands. It is clear that sustainable investing has ushered in a new era for financial markets, where financial performance and societal impact go hand in hand.