How is sustainable investing different from traditional investing?

Sustainable investing differs from traditional investing in that it aims to generate financial returns while also considering environmental, social, and governance (ESG) factors. Traditional investing focuses primarily on generating financial returns without necessarily considering the impact of investments on the broader world. Sustainable investing, on the other hand, takes into account the longterm risks and opportunities associated with ESG factors, such as climate change, human rights, labor standards, and corporate governance. By considering these factors, sustainable investing seeks to create positive societal and environmental impact alongside financial returns.