Core Viewpoint - ESG investing can serve as a risk mitigation strategy, helping investors reduce exposure to potential environmental, social, and governance risks while seeking returns [2][5][6]. Group 1: ESG Investing and Risk Mitigation - The Invesco ESG Nasdaq 100 ETF (QQMG) and Invesco ESG Nasdaq Next Gen 100 ETF (QQJG) are designed to dampen some risks associated with equity investments [2][3]. - Historical market examples show that stocks can decline due to environmental disasters, underscoring the benefits of excluding companies with potential environmental risks from investment portfolios [3][4]. - Negative ESG events can incur significant costs, including cleanup expenses, legal battles, and reputational damage, which can adversely affect a company's bottom line [4][6]. Group 2: ESG Integration in Risk Management - Unlike values-based investing, ESG risk management utilizes sustainability factors to identify potential issues before they impact financial performance [5][6]. - Companies that incorporate ESG risk factors into their traditional risk management frameworks gain a comprehensive understanding of their industry vulnerabilities, enhancing long-term resilience [7].