ESG Investing Explained

For a long time, investment firms had one overarching goal: to make their clients as much money as possible. But Environmental, Social and Governance investing, or ESG, factors other issues into which companies it will invest your money. Those factors include a company’s carbon footprint and its commitment to diversity and other social causes. Different agencies then rate companies for their performance in these areas. But what is the impact of including these other factors into financial decisions? Radio America’s Erika Kyba explains how ESG became such a huge influence on investing so quickly, why the ratings can be very confusing, and what it all means for your bottom line.

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