ESG investing also known as "socially responsible investing," "impact investing," and "sustainable investing" is an investment strategy that prioritizes the best environmental, social, and governance (ESG) factors or outcomes. ESG investing is widely regarded as a method of investing "sustainably"—that is, with consideration for the environment, human well-being, and the economy. It is based on the growing assumption that environmental and social factors are increasingly influencing organizational financial performance.

ESG investing, standing for Environmental, Social, and Governance, is a strategy that considers not only financial returns but also the ethical and sustainable impact of investments. Environmental factors assess a company's impact on nature, including its carbon footprint and resource usage. Social factors examine how a company treats its employees, engages with communities, and addresses social issues. Governance evaluates the company's leadership, transparency, and adherence to ethical business practices.

Investors increasingly recognize the importance of ESG considerations in decision-making, aligning their portfolios with their values. Companies with strong ESG practices are believed to be more resilient, with a potential for long-term success. ESG investing reflects a growing awareness of corporate responsibility and sustainability, emphasizing the broader impact of investments beyond mere financial gains. This approach seeks to promote positive change by directing capital towards businesses that prioritize ethical, sustainable, and socially responsible practices.