Sustainable debt is loan or bond financing that helps mitigate or address a specific environmental or social concern or achieve positive environmental or social outcomes. The term environmental, social, and governance (ESG) investing, often used interchangeably with sustainable investing, denotes an investment approach wherein investors apply nonfinancial factors related to ESG issues in their investment analysis to identify risks and opportunities. The practice of ESG investing began in the 1960s as socially responsible investing, with investors excluding stocks or entire industries from their portfolios to avoid investing in morally questionable businesses. In recent years, ESG investing has garnered tremendous interest because of the recognition of environmental and social risks to the global economy; the urgency that the Paris Agreement and the 2030 agenda for sustainable development have created; and the resulting impetus to finance initiatives that help limit global warming, environmental degradation, and various social problems. Investors use a variety of strategies, including negative or exclusionary screening, positive screening, integration of ESG considerations, thematic and impact investing, and active ownership and stewardship, to incorporate ESG considerations into their investment processes. Climate change, resource scarcity, and demographic and social change feature prominently in several investment strategies. Impact investments are often made to address challenges in sectors such as sustainable agriculture, renewable energy, conservation, microfinance, and affordable and accessible basic services, including housing, health care, and education
