The Rise of ESG: A Tale of Two Stories
With an increasing emphasis on sustainability and ethical practices, Environmental, Social, and Governance (“ESG”) factors have become pivotal for both corporations and investors. Environmental responsibility concerns a company’s impact on the planet, including carbon emissions, energy consumption, and pollution. Social responsibility encompasses people and culture as well as their impact within the community. Lastly, governance entails how companies are managed and whether they hold their leaders accountable. While ESG has become increasingly important to corporations across America, demand for ESG products has also grown important to investors. Despite challenges, the future of ESG investing appears promising, provided stakeholders adapt to evolving markets and regulations.