Environmental sustainability is a key component of ESG investing, and it is essential for companies to consider the impact of their business activities on the planet. Environmental factors include a wide range of issues, such as climate change, pollution, and resource conservation.
Investors are increasingly recognizing the importance of environmental sustainability, and they are using ESG criteria to evaluate companies and make investment decisions. This is because environmental factors can have a significant impact on a company’s financial performance. For example, companies that are investing in renewable energy are reducing their exposure to rising energy costs, and companies that are reducing their waste are reducing their costs and improving their efficiency.
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