Investors are integrating Environmental, Social, and Governance factors into their investment decision-making. The ‘E’ in ESG measures resource use, pollution, climate change, energy use, waste management, and other dimensions that impact the environment. The ‘S’ captures those that have a social impact, including employee-related themes like gender diversity, their health, and safety, anti-bribery policies. And ‘G’ refers to the roles and responsibilities of the board, rights of shareholders, transparency, and disclosures by companies. Today over US$ 50 trillion is invested on the basis of ESG parameters. And as with all large ‘industries’, the ESG fund industry has developed its own lexicon.
To help you navigate this world, our ‘An everyday guide to ESG’ is now available to Download .