Financial advisors expect the president's proposal to lend more support.
"Biden's influence here is going to be helpful," Mark Mathers, a certified financial planner and partner at Beacon Pointe Advisors in Boston, said.
ESG funds can allocate money in many ways to promote social good. They may invest in energy firms that aren't reliant on fossil fuels or in companies that promote things like racial and gender diversity, for example.
Do-it-yourself investors looking to grab a stake in climate- or environmentally focused funds should do some research to ensure a specific fund's focus.
And all asset managers aren't created equal when it comes to ESG, Mathers said. Some are seizing on the funds' recent popularity to debut investments, he said.