There are risks and challenges associated with ESG investing, such as the difficulty of accurately measuring and...
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Investors are wondering what's ahead of ESG companies in times of increasing number of companies which share their ESG plans. What's more, a new directive imposed by the EU is going to be introduced in the coming months. Driven by curiosity we asked Walid Koudmani from XTB about 2023 year in ESG investing.
FXMAG.COM: How do you see 2023 in terms of ESG companies investing?
Walid Koudmani (XTB): It's likely that ESG (Environmental, Social, and Governance) investing will continue to be a major trend in 2023 and beyond, while more investors prioritize sustainability and responsible business practices in their investment decisions as the increasing focus on ESG factors is driven by a range of factors, including growing public awareness of environmental and social issues, regulatory changes, and the emergence of new technologies and business models that enable more sustainable practices.
Walid Koudmani (XTB): In 2023, we may see continued growth in the ESG investing space, with more companies and investors embracing sustainability and social responsibility as core principles of their operations. This could lead to increased demand for ESG-focused investment products, such as sustainable funds and green bonds while favoring companies that invest in these ideals as they may appear more "future proof" than competitors who opt not to.
In 2023, we may see continued growth in the ESG investing space, with more companies and investors embracing sustainability and social responsibility as core principles of their operations
Walid Koudmani (XTB): However, there are risks and challenges associated with ESG investing, such as the difficulty of accurately measuring and comparing ESG performance across companies and sectors as investors will need to carefully evaluate ESG investments and consider a range of factors, including the quality and reliability of ESG data to make informed decisions.
