ESG investing means incorporating Environmental, Social, and Governance factors alongside financial analysis when making investment decisions.
Environmental (E): How a company impacts the environment — carbon emissions, energy efficiency, waste management.
Social (S): How a company treats employees, customers, and communities — labor rights, diversity, community development.
Governance (G): Transparency of leadership and internal controls — board structure, policies, anti-corruption measures.
ESG investing can be profitable as well as ethical. ESG-conscious companies tend to be less risky and more sustainable in the long term.
In Bangladesh, ESG investing is gradually gaining popularity. Bangladesh Bank has developed a 'Sustainable Finance Policy' to promote responsible investing.