What is ESG investing?

“At its core, ESG investing is about influencing positive changes in society by being a better investor,” says Hank Smith, head of investment strategy at The Haverford Trust Company. According to Smith, ESG investing assumes that there are certain environmental, social and corporate governance factors that impact a company’s overall performance.

Why is ESG analysis important?

ESG analysis has become an increasingly important part of the investment process. 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.

What's the difference between ESG investing & analysis?

Earlier models typically use value judgments and negative screening to decide which companies to invest in. ESG investing and analysis, on the other hand, looks at finding value in companies—not just at supporting a set of values.