What is ESG investing?

ESG investing is a strategy to ferret out companies that meet specific environmental, social, and good governance parameters. Here’s an example of the factors that are considered in each of the ESG or sustainable investing categories: The growth in ESG investing is driven by a broad desire for a more just society.

What is an ESG score?

An ESG score is a quantifiable determinant of a company’s rank on a range of environmental, social, and governance issues. Various organizations calculate and attempt to standardize ESG scores. ESG scores are based on information from securities filings, corporate disclosures, government databases, academic studies, media reports, and more.

What are ESG assets?

Other ESG assets may focus on components of ESG investing, such as lowering carbon emissions, improving worker equity, gender diversity, minority empowerment, greater board diversity, investing in green projects, and ethical labor management. Most screeners assign a company an ESG score.