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Here are a few of the outcomes that contribute to a company's long-term sustainability and competitiveness. Reduced cost of capital Sustainableinvestments often attract a broader base of investors, including socially responsible investment funds and individuals looking for ethicalinvestment opportunities.
Another distinction is that ESG investment considers ESG factors to have financial implications, as opposed to only ethical ones. In other words, a positive impact is valued above financial returns. In other words, a positive impact is valued above financial returns. The second issue to sort out is measurement.
Pacifists may choose not to invest in companies that manufacture weapons. Environmentalists may choose to invest in companies that produce durable products from natural materials. Terms like sustainableinvesting, impactinvesting, and ethicalinvesting were used to describe this activity.
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