Environmental protection strategies by socially responsible ETFs

Abstract

While stock markets are chiefly concerned with profits, many executives understand Environmental degradation, and climate change comes with real financial risks. Increasing risks of climate change must be taken very seriously. Investors and companies all around the world are expressing growing concerns over social issues such as climate change. The transition to renewable energy, changing energy consumption behavior, and increasing environmental performance could be some solutions to save our planet. In addition, some index providers rank companies based on how ethically they operate. So, the good news is that there are accessible and affordable exchange-traded funds for people who want to invest without sacrificing their principles. This paper investigates how socially responsible ETFs’ follow ESG principles (environmental, social, and governance), and their solutions can help us to protect the environment.