EXPLAINER: ESG investing and the debate surrounding it

By STAN CHOE
AP Business Writer

NEW YORK (AP) — After starting as a niche corner of the finance world, ESG investing has since exploded to become a major force on Wall Street _ and the latest front in the nation’s cultural schism. To use an ESG approach is to consider a company’s performance on environmental and other measures, before deciding whether to invest in it. The industry says ESG helps make better decisions by highlighting companies that may be riskier than traditional investing guidelines alone would suggest. It could also help find better opportunities. To critics, it’s all just the latest example of the world trying to get woke.