Investing isn’t just about making money – it’s also about doing good. ESG investing is all the rage these days, and it stands for Environmental, Social, and Governance. These three pillars guide investors in choosing companies that are kind to the planet and society.

We’ve got the environment for starters. Imagine looking at companies and checking if they’re serious about going green. Are they cutting down on carbon emissions? Maybe they’re big fans of renewable energy or are crazy about not polluting. Companies doing well here get a high ESG score.

Think about how a company treats people – its employees, suppliers, and the community. Are they fair and diverse? Do they have good vibes with everyone they deal with? This social aspect of ESG is all about being people-friendly.

The governance part is all about how a company is run. Investors want to see strong leadership, fair executive pay, and good internal controls. Transparency with shareholders is a huge deal.

So why should anyone care about ESG investing? Some folks think that being responsible means lower returns, but that’s not always the case. Research shows that ESG investments can reduce risks and might even outperform other investments. Some ESG funds have even done better than biggies like the S&P 500.

Ready to dive into ESG investing? You’ve got options! You can go stock-picking and choose companies that align with your values based on their ESG scores. It’s a bit of legwork, but super rewarding. Or, go for ESG funds, which are managed by pros who pick the right companies for you. These funds come already diversified, making life easier.

If you’re looking for something set-it-and-forget-it, robo-advisors are a sweet deal. Wealthfront and Betterment, for example, offer ESG options and do all the heavy lifting for you.

Of course, not everyone is sold on ESG investing. Critics say it’s more about politics than profits, and some states even limit ESG in public retirement investments. But many experts argue it just makes good business sense to invest this way.

To find ESG investments, check out lists of high-rated ESG stocks on sites like Morningstar. Stock screeners can also help you find companies that tick all your ESG boxes. Just a heads up, ESG funds often have higher expense ratios, but many investors think the extra cost is worth it.

Oh, and don’t mix up ESG with sustainable investing. They’re related but not the same. ESG focuses on company practices, while sustainable investing looks at the broader impact of these practices on the world.

Bottom line, ESG investing lets you put your money where your heart is. It’s not only a feel-good move but can also be a smart financial strategy. Whether you’re into picking individual stocks, opting for ESG funds, or handing things over to a robo-advisor, there are plenty of ways to jump in. Just make sure you do your homework and know what you’re getting into.