ESG investment: a new word or a new world?

Modern investors and financiers are increasingly considering a wide range of non-financial factors when making investment decisions. ESG investment (investing), which considers environmental (E), social (S) and governance (G) aspects of companies activities, has been gaining momentum for quite a while. At the same time there is no clear definition or understanding of the boundaries of ESG investing now. That explains the relevance of the research with its purpose to examine the essence of the ESG investment concept and the basic features distinguishing it from other kinds of investing. This purpose is fulfilled through the methodology of system analysis, methods of historical and comparative analysis. As a result, the authors concluded that, despite its comprehensive nature and growing relevance, ESG investing cannot be considered an umbrella term for all types of values-based investment. This is due to the concepts semantic emphasis on the three groups of ESG factors, ESG risks and their impact on financial results. Arguably, the growing use of the similar terms ESG investing, sustainable investing and responsible investing reflects the interest of various stakeholders in the characteristic features of these concepts.