In recent years, investors have started to pay more attention to factors beyond financial returns when making investment decisions. This shift in focus has led to the rise of ESG investing, which takes into account Environmental, Social, and Governance factors to assess the long-term sustainability and societal impact of companies. ESG investing has gained popularity due to the growing awareness of environmental and social issues. Climate change, human rights, and corporate governance have become important considerations for investors looking to align their investments with their values. By investing in companies that prioritize ESG factors, investors can contribute to positive change while still seeking financial returns. Environmental factors consider a company's impact on the environment, including its carbon emissions, resource usage, and waste management. Social factors look at how a company treats its employees, customers, and communities. This can include labor practices, diversity and inclusion policies, and community engagement. Governance factors assess the company's leadership, transparency, and ethics. ESG investing offers several benefits to both investors and companies. For investors, it provides an opportunity to have a positive impact on society while still generating returns. Research has shown that companies with strong ESG performance tend to outperform their peers in the long run, indicating that ESG factors are material to financial performance. Companies that prioritize ESG factors also stand to gain. By actively managing their impact on the environment and society, they can enhance their reputation and attract socially conscious investors. They may also be better positioned to navigate regulatory changes and mitigate risks associated with environmental and social issues. The rise of ESG investing has prompted the development of various assessment frameworks and tools to measure a company's ESG performance. These tools provide investors with a standardized way to evaluate companies based on their ESG practices. They also enable companies to identify areas for improvement and set targets to enhance their ESG performance. In conclusion, ESG investing is a growing trend in the financial markets that considers Environmental, Social, and Governance factors when making investment decisions. It offers investors the opportunity to align their investments with their values and contribute to positive societal change. Companies that prioritize ESG factors can enhance their reputation and mitigate risks associated with environmental and social issues. As ESG continues to gain traction, it is expected to play a significant role in shaping the future of investing and the global economy.