What is ESG?
Environmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to determine whether they want to invest in or do business with that company. These criteria may include:
Natural resource conservation; carbon footprint/impact on climate change; sustainability initiatives; proper waste disposal/recycling efforts; investments in renewable energy; opposition to deforestation
Safe working conditions for employees; animal welfare/testing; racial equality issues; LGBTQ+ equality issues; gender equality issues; improved access to education; charitable contributions/donations; impact of product/service on people’s well-being; health insurance offered to their employees; involvement in reducing poverty
Wages provided to their employees; transparency in their business practices; donations to PACs/political candidates; level of executive compensation; if/how they allow stockholders to vote on issues; number of women on their board of directors; number of minorities on their board of directors