ESG Investing in the Spotlight

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ESG Investing in the Spotlight

Aug 25, 2025

People generally choose an investment with an eye toward adding financial value to their portfolio. Over the past two decades, however, many investors have added another layer of values in making investment decisions. The most common criteria are related to environmental, social, and corporate governance issues, typically referred to as ESG factors.

More recently, ESG investing has become controversial, primarily due to large institutional investors such as universities and pension funds using ESG factors to construct their portfolios. Critics say that this approach compromises potential returns, while proponents claim that better ESG practices may help lower risk and provide more stability without sacrificing performance. As an individual investor, the choice to apply personal values to your investments is entirely up to you, and it may be helpful to know more about this approach.

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