Identifying and understanding ESG Investing risks and opportunities help enhance our ability to make better investment decisions and pursue better outcomes for investors.
Environmental, social, and governance (ESG)
Environmental, social, and governance (ESG) factors can impact businesses’ sustainability and long-term success.
ESG stands for Environmental, Social, and Governance. It is a set of criteria used to evaluate an investment’s sustainability and ethical impact. ESG criteria consider factors such as a company’s carbon footprint, labour practices, and corporate governance.
Environmental: Environmental criteria consider a company’s impact on the environment. This includes factors such as a company’s carbon footprint, energy efficiency, and waste management.
Social: Social criteria consider a company’s impact on society. This includes factors such as labour practices, human rights, and diversity.
Governance: Governance criteria consider a company’s corporate governance practices. This includes factors such as executive compensation, board composition, and shareholder rights.
Why Environmental, social, and governance (ESG)?
Our ESG mandate is a guide to invest in companies that positively impact society and the environment and avoid those that engage in practices that are harmful to society or the environment.
There are several reasons why investors consider ESG investing:
- Environmental concerns: ESG investing allows investors to support companies addressing environmental issues such as climate change and pollution.
- Social responsibility: A choice to support companies that positively impact society and avoid those that engage in harmful practices such as discrimination, human rights violations, and corruption.
- Governance: A genuine focus on companies with good governance practices, such as transparency, and avoiding companies with poor governance practices.
- Long-term financial performance: Some studies have shown that companies with strong ESG practices tend to have better long-term financial performance, which can benefit investors.
- Personal values: Some investors may choose to invest in ESG to align their investments with their values and beliefs.