Glossary
From A to Z all the terms you need to skip the jargon and get started!
ESG
ESG stands for Environmental, Social, and Governance factors. These are non-financial criteria used to evaluate the ethical, sustainable, and responsible practices of companies.
ESG investing focuses on incorporating these factors into investment decisions, as they can have a significant impact on a company's long-term performance, reputation, and risk management. 🌱🤝
For example, an ESG investor may choose to invest in a company with a strong environmental track record, good employee relations, and transparent corporate governance practices, as these aspects can contribute to the company's long-term success.
Fun fact: ESG investing has gained significant traction over the past few years, and as of 2020, it is estimated that more than $35 trillion of assets under management worldwide are invested with ESG factors in mind. This growing trend reflects a shift in investor priorities, as they increasingly consider the broader implications of their investments on society and the environment. 🌍