Investors now consider sustainability a significant factor when investing. As the world moves inexorably towards more sustainable lifestyles and business practices, companies are focusing more on following environmental, social, and governance (ESG) norms. Investors’ interest in sustainability-focused investing is evident in the Vanguard ESG U.S. Stock ETF’s (ESGV) 11.9% gains over the past year.
Growing climate change concerns and the need for socially responsible business behavior have heightened the prominence of ESG investing. According to a Bloomberg analysis, global ESG assets will likely exceed $53 trillion by 2025.
