The Rise Of ESG Investing



ESG is a catch-all term for investing strategies that consider a company’s environmental, social and governance factors. ESG investing is predicted to surge following the coronavirus pandemic and demonstrations over racial justice. Consumers and Wall Street investors alike are increasingly holding companies accountable for their performance on environmental, social and governance benchmarks—or ESG, for short. Here’s how ESG investing could transform the financial and business industry.

Before the police killing of George Floyd in Minnesota and before Covid-19 forced corporate America into lockdown, companies were being singled out for social responsibility.

It’s a trend that began to accelerate well before the current crises, and has now gone mainstream.

“Investors were really flocking to ESG strategies,” said Valerie Grant, senior portfolio manager of responsible investing at AllianceBernstein. “For ETFs, there were $8 billion inflows into ESG strategies. And for mainstream funds, the flows were $12 billion.”

While critics have called ESG investing vague and even a fraud, analysts predict it will double in 2020 and become integrated into the investment decisions of every investor.

» Subscribe to CNBC:
» Subscribe to CNBC TV:
» Subscribe to CNBC Classic:

About CNBC: From ‘Wall Street’ to ‘Main Street’ to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more.

Connect with CNBC News Online
Get the latest news:
Follow CNBC on LinkedIn:
Follow CNBC News on Facebook:
Follow CNBC News on Twitter:
Follow CNBC News on Instagram:

#CNBC

The Rise Of Socially Conscious Investing

source

Leave a Reply

Your email address will not be published. Required fields are marked *