Investors these days look beyond just the financial aspect when making investment decisions. ESG (environment, social, and justice) investors, for example, place their funds in socially responsible or sustainable businesses. An FXCM article on ESG investment reveals that, in 2018, this kind of investment strategy accounted for 20 trillion USD (17 trillion EUR or 14.6 trillion GBP) in assets under management.
Research also shows that companies that practice sustainability perform better on an operational level, which invites more cash flow and investments. Companies that want to take their financing further can improve their sustainability practices and take advantage of the growing popularity of ESG investing.