摘要：This paper examines the burgeoning field of green finance and ESG (Environmental, Social, Governance) investing, assessing their impact on traditional investment strategies. Through a comprehensive analysis, the study explores the core principles of traditional investing, the rise of sustainability in finance, and the challenges these present to conventional risk and return paradigms. It further discusses the role of technology, market adaptation, and policy in shaping the future of sustainable investing. Case studies highlight successful ESG integration and compare performance with traditional portfolios. The paper concludes with strategic recommendations for investors and policymakers, emphasizing the importance of ESG factors in longterm value creation and risk management.