“Environmental, Social, and Governance (ESG) refers to the three central factors in measuring the sustainability and societal impact of an investment in a company or business.
These criteria help to better determine the future financial performance of companies (return and risk).”
Why ESG investing is important?
“Investors want business leaders to focus on ESG, or environmental, social and governance metrics. That means progress on ESG isn’t just a nice-to-have anymore. It’s something shareholders will demand, because they believe it’s going to drive everything else they care about. Growth, market share, profitability.”
What are ESG stocks?
ESG stocks are stocks that apply Environmental, Social, and Governance rules.