Environmental Social Governance

Environmental Social Governance (ESG) refers to the three central factors that are used to measure the sustainability and ethical impact of an investment in a company.

ESG is becoming an increasingly important consideration for investors who are looking to invest their money in companies that are sustainable and socially responsible.

Why is ESG important?

First, it allows companies to demonstrate their commitment to sustainability and social responsibility. This can help to attract socially conscious investors who are looking to support companies that align with their values.

Second, ESG can help to reduce risk. Companies that take steps to reduce their environmental impact, for example, are less likely to face regulatory penalties or reputational damage.

Finally, ESG can help to improve long-term financial performance. Studies have shown that companies that prioritize ESG tend to perform better over the long term than those that do not.