What is ESG Investing?Environmental, social and governance criteria (ESG) are a set of standards used by companies and investors to measure how a company performs when it comes to stewarding the environment, social relationships, and corporate governance. Also known as sustainable investing, ESG investing gives socially conscious investors an opportunity to screen potential investment opportunities according to their values. Some questions an investor might ask when researching companies with ESG policies are:
- What impact does this company have on the environment?
- How does this company improve its social impact, both within the company and in the broader community?
- How does this company’s board and management drive positive change?¹