Need for investors to undertake ESG analysis before deciding to make an investment

Climate change is a reality. Twenty percent of the global businesses are directly getting impacted by global warming. The balance eighty percent are being affected by association.

Consumers are demanding businesses to adopt climate-friendly practices. Smart companies understand this customer trend and are adapting their business strategies to be climate-friendly.

Future-ready businesses will prevent getting disrupted.

Investors look for alpha. Alpha will come from future-ready businesses. Analyzing ESG strategies and policies of a company sits at the center of future readiness. Smart long-term investors are beginning to understand this trend. They look at the business strategy, business model, and business operations of a company.

As an investor, you need to invest in businesses that are preparing themselves for these trends. For instance, look for the current energy mix and plans to move to low carbon or no-carbon energy sources.

ESG policy analysis should be an integral part of all investment strategies.

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