Do you think ESG investing is a good investment strategy or not? If you believe that ESG investing is a good way to invest in stocks then here are some important ESG investing mistakes that you need to avoid.
Investing in a company that has bad social and environmental policies
ESG investors don’t like companies that are involved in any kind of illegal activities and also they don’t like companies that are involved in unethical practices.
There are certain companies that are investing in such companies as they want to make their money. If you are going to invest in these kinds of companies, then I would suggest you avoid it because you will never see a good return on your investment.
Investing in companies that are doing something immoral and unethical
Another mistake that people are making is investing in companies that are involved in unethical business practices. Some companies that are involved in illegal activities are doing it for the sake of money.
It is the responsibility of the investor to make sure that the company is not doing anything immoral or unethical. If the company is doing something immoral, then you should stay away from it.