What Is ESG Investing?

Learn how ESG investing helps investors assess environmental, social, and governance performance alongside financial metrics. The strongest balance sheets do not just attract capital. They attract the right capital on the best terms. ESG investing is changing how organizations are evaluated, and which businesses benefit from that shift. In this video, we explain what ESG investing means, why it matters, and how it is reshaping access to capital. ESG investing evaluates companies through environmental, social, and governance factors alongside traditional financial metrics. These factors can include emissions, energy use, labor standards, governance practices, and long-term risk management. For institutional investors, asset managers, pension funds, and financial institutions, ESG performance is increasingly part of how companies are screened, compared, and valued. For businesses that rely on external capital, ESG criteria can influence investor confidence, borrowing costs, portfolio inclusion, and access to funding. Strong ESG performance can signal operational quality, transparency, and long-term resilience. To prepare, organizations need to identify the ESG factors most material to their business and integrate those metrics into financial systems rather than managing them separately. SAP Sustainability solutions connect ESG and financial data across the enterprise and help automate reporting against major sustainability frameworks. This gives organizations verified, transparent performance data that investors can use with confidence. ESG investing is reshaping how capital flows. Organizations that build credible, data-driven ESG performance now will be better positioned to attract investors on stronger terms. Explore ESG investing: https://sap.to/6054BHzRIE Chapters 00:05 - Why ESG investing matters 00:20 - What ESG investing means 00:48 - How investors use ESG data 01:38 - Building credible ESG performance 02:06 - How SAP Sustainability solutions can help Follow us on social: LinkedIn: https://sap.to/6058BHzRIy Instagram: https://sap.to/6050BHzRIK Facebook: https://sap.to/6051BHzRIz Threads: https://sap.to/6052BHzRIM About SAP: As a global leader in enterprise applications and business AI, SAP stands at the nexus of business and technology. For over 50 years, organizations have trusted SAP to bring out their best by uniting business-critical operations spanning finance, procurement, HR, supply chain, and customer experience. For more information, visit: https://sap.to/6053BHzRI3 #SAP #Sustainability #ESG