ESG

Ethical investing framework

ESG stands for environmental, social, and governance, a framework used to evaluate companies and investments based on factors beyond traditional financial metrics.

Environmental criteria assess a company's impact on nature; social criteria examine how it treats employees, suppliers, and communities; governance criteria look at leadership, ethics, and shareholder rights.

The fund only invests in companies with strong ESG ratings.

ESG has become both a major investment strategy and a flashpoint in debates about corporate responsibility versus profit maximization.

governance

executive compensation

Senior management earnings package

audit committee · corporate ethics · anti-corruption · risk management · fiduciary duty · voting rights · disclosure · compliance · regulatory oversight · business ethics

reporting

disclosure

Act of revealing information

verification · standards · frameworks · annual report

investing

sustainable investing

Capital allocation considering ethics

shareholder activism · proxy voting · screening · fiduciary · asset management · institutional investors · pension funds · materiality · stewardship

environmental

carbon footprint

Total greenhouse gases produced

renewable energy · biodiversity · deforestation · net zero · carbon neutral · decarbonization · waste management · pollution · clean energy · ecosystem

social

diversity

State of varied elements

fair trade · living wage · worker safety · community engagement · gender equality · ethical sourcing · data privacy · health and safety · workforce development · human capital

Categories
Opposites
investment philosophy

ESGprofit maximization

Pursuing greatest possible gains

value investing · short-termism

corporate priorities

ESGshareholder value

Equity investor financial returns

cost-cutting · greenwashing · extraction · race to the bottom · short-term thinking

regulatory/political stance

ESGclimate skepticism

Doubt about atmospheric science

laissez-faire · deregulation · Ron DeSantis

Family

environmental, environment, environments, environmentally, social, socially, society, societies, societal

Familiarity
Top 1,000,000
Profile
Used worldwide · Abstract · Rated G