How ESG investing captured trillions of dollars on Wall Street

The rise of ESG investing
The rise of ESG investing

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Before the police killing of George Floyd in Minnesota and before Covid-19 forced corporate America into lockdown, companies were being singled out for social responsibility.

It's a trend that began to accelerate well before the current crises, and has now gone mainstream.

"Investors were really flocking to ESG strategies," said Valerie Grant, senior portfolio manager of responsible investing at AllianceBernstein. "For ETFs, there were $8 billion inflows into ESG strategies. And for mainstream funds, the flows were $12 billion."

ESG is a catch-all term for investing strategies that consider a company's environmental, social and governance factors. While critics have called ESG investing vague and even a fraud, analysts predict it will double in 2020 and become integrated into the investment decisions of every investor.

Watch the video above to find out how ESG investing could transform the financial sector.