What are environmental social and governance factors (ESG)?

Environmental, social and governance factors (ESG) are used to evaluate a company or investment's sustainability. ESG investing is a form of sustainable investing that considers environmental, social and governance factors to judge an investment’s financial returns and its overall impact. What is ESG?

What is environmental social and governance (ESG) investing?

Environmental, social, and governance (ESG) investing is used to screen investments based on corporate policies and to encourage companies to act responsibly. Many brokerage firms offer investment products that employ ESG principles. ESG investing can help portfolios avoid holding companies engaged in risky or unethical practices.

Why should investment professionals consider environmental social and governance issues?

For investment professionals, a key motivation in the practice of considering environmental, social, and governance (ESG) issues as part of their financial analysis is to gain a fuller understanding of the companies in which they invest. Interested in accelerating your career?