ESG (Environmental, Social, Governance) investing has surged from niche to mainstream—$41 trillion assets now follow ESG principles (GSIA 2023). Contrary to myth, ESG funds matched or outperformed conventional ones in 80% of cases (Morningstar 2024).
Implementation roadmap:
nvironmental: Carbon footprint audits → Tesla reduced emissions 30% via supply chain optimization.
Social: Gender-diverse boards deliver 15% higher ROE (McKinsey).
Governance: Independent directors reduce fraud risks (Enron lesson).
Skeptics cite “greenwashing,” but regulations like EU’s SFDR are tightening standards. Tools like MSCI ESG Ratings help separate leaders from laggards.