ESG investing means looking at how companies handle environmental, social and governance issues — a lens some people like to apply to where their money goes.
What ESG covers
Environmental (for example, climate impact), social (how a company treats people) and governance (how it is run). It is a way of considering more than just financial returns.
A lens, not a strategy
ESG is a preference about where money goes, not a risk profile on its own. It does not change how much short-term volatility you can comfortably handle.