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What is ESG Investing?

ESG investing is the consideration of environmental, social, and governance factors alongside financial factors in the investment decision-making process. It aims to generate long-term, sustainable returns by supporting companies that operate responsibly. ESG investing includes screening investments for adherence to ESG criteria, engaging with companies to improve their practices, and excluding industries with negative impacts. It reflects growing investor awareness of the importance of sustainability. This type of investing can also mitigate risks associated with environmental and social issues.

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