Sustainable and socially responsible investing continues to gain momentum, particularly among millennial investors who increasingly seek to align their portfolios with their values. This trend is driving significant capital flows into ESG-focused funds and securities.
Investment firms are responding by expanding their sustainable investment offerings and improving transparency around environmental, social, and governance criteria. Many report that sustainable investment options are no longer niche products but mainstream investment vehicles.
Research suggests that millennial investors are willing to accept potentially lower returns in exchange for investments that align with their values, though many sustainable investments have performed competitively with traditional alternatives.