What It Is and How It Works
What Is Environmental, Social, and Governance (ESG) Investing?
ESG stands for environmental, social, and governance. ESG investing refers to an investing approach that prioritizes how companies score on these metrics. Environmental criteria gauge how a company safeguards the environment. Social criteria examine how it manages relationships with employees, suppliers, customers, and communities. Governance measures a company’s leadership, executive pay, audits, internal controls, and shareholder rights.
Key Takeaways
- Environmental, social, and governance (ESG) investing involves screening investments based on corporate policies, encouraging companies to act responsibly.
- Many brokerage firms offer investment products that…
