How do sustainability criteria and ESG factors play a role in sustainable investment decisions?

Sustainability criteria and environmental, social, and governance (ESG) factors play a significant role in sustainable investment decisions. These factors are used to evaluate the impact of an investment on the environment and society, as well as the effectiveness of a company's management practices. The incorporation of ESG factors into investment decisions enables investors to invest in companies that are making a positive impact on the world, while avoiding those that are having a negative impact.

Sustainability criteria and ESG factors may include a company's carbon footprint, energy efficiency, waste management practices, labor standards, community engagement, diversity and inclusion policies, and executive compensation. By analyzing these factors, investors can evaluate a company's potential to create longterm value for shareholders, while also making a positive impact on society and the environment.