Environmental, social, and governance (ESG) investing is on the rise globally, driven by the shift towards sustainable practices.
According to a 2023 survey conducted by research platform Statistica, 50 per cent of professional investors plan to increase their ESG portfolios in 2024.
Additionally, a study by Macquarie University and trading platform MooMoo involving 1600 Australian investors revealed that while education about ESG leads to increased focus on related stocks, there’s still a significant misunderstanding about its true essence.
Tech companies like Wisetech Global (ASX:WTC), Apple, Microsoft, and Alphabet are leading in ESG integration, with positive impacts on its shares.
ESG-focused ETFs are also growing in popularity, with Betashares reporting a 24.7 per cent growth in the ETF industry in the last 12 months.
Market Strategist Jessica Amir from MooMoo anticipates continued ESG growth in 2024, driven by new generations emphasising sustainability.
Rio Tinto’s response to the destruction of an aboriginal heritage site in 2020 has underlined the importance of proactive measures and community engagement.
Proactive ESG practices are increasingly seen as essential for long-term success.