From Ethics to Economics: Demystifying ESG Investing

 

Introduction: From Niche to Mainstream

 In the last two decades, ESG investing has moved from the fringes of ethical finance to the core of global markets. What began as a way for investors to align portfolios with their values has matured into a framework for protecting and enhancing value. Today, ESG is no longer a side note in corporate reports; it is shaping how capital flows, how risks are assessed, and how companies compete for trust and growth.




What Exactly Is ESG Investing?

At its core, ESG stands for Environmental, Social, and Governance, three lenses through which companies are evaluated.

  • Environmental: How does a company manage its impact on nature? This includes emissions, energy use, waste management, and climate action.
  • Social: How does it treat people, employees, suppliers, customers, and local communities?
  • Governance: How effectively is it managed from board independence and shareholder rights to transparency and executive pay?

 

ESG investing incorporates these non-financial factors into traditional investment analysis. The idea is that companies performing well on ESG criteria are better positioned for sustainable, long-term success.

Why Traditional Systems Fall Short

 Legacy ERPs and accounting platforms were designed for record-keeping, not today’s real-time, high-volume financial activity. They can tell you the balance — but they can’t define how that balance should behave.

Modern businesses need real-time visibility into transactions, the ability to manage multi-party flows, and programmable rules that adapt to evolving business models.

Traditional tools provide the foundation, but sub-accounting builds on top of it — offering the flexibility, granularity, and automation required for dynamic environments like digital marketplaces, large-scale project finance, or real-time lending. Read more 

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From Ethics to Economics: Demystifying ESG Investing

  Introduction: From Niche to Mainstream   In the last two decades,  ESG investing  has moved from the fringes of ethical finance to the core of global markets. What began as a way for investors to align portfolios with their  values  has matured into a framework for protecting and enhancing  value . Today, ESG is no longer a side note in corporate reports; it is shaping how capital flows, how risks are assessed, and how companies compete for trust and growth. What Exactly Is ESG Investing? At its core, ESG stands for  Environmental, Social, and Governance,  three lenses through which companies are evaluated. Environmental:  How does a company manage its impact on nature? This includes emissions, energy use, waste management, and climate action. Social:  How does it treat people, employees, suppliers, customers, and local communities? Governance:  How effectively is it managed from board independence and shareholder rights to t...
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