Environmental, social, and governance

Environmental, social, and governance (ESG), is a set of aspects, including environmental issues, social issues and corporate governance that can be considered in investing. Investing with ESG considerations is sometimes referred to as responsible investing or, in more proactive cases, impact investing.^[1]

The term ESG first came to prominence in a 2004 report titled "Who Cares Wins", which was a joint initiative of financial institutions at the invitation of the United Nations (UN).^[2] By 2021, the ESG movement has grown from a UN corporate social responsibility initiative into a global phenomenon representing more than US$30 trillion in assets under management.^[3]

Criticisms of ESG vary depending on viewpoint and area of focus. These areas include data quality and a lack of standardization; evolving regulation and politics; greenwashing; and variety in the definition and assessment of social good.^[4]

^ Gelles, David (28 February 2023). "How Environmentally Conscious Investing Became a Target of Conservatives". The New York Times. ISSN 0362-4331. Archived from the original on 2 March 2023. Retrieved 2 March 2023. ... investing principle known as E.S.G. — shorthand for prioritizing environmental, social and governance factors
^ "Who Cares Wins – The Global Compact Connecting Financial Markets to a Changing World" (PDF). UN Environment Programme – Finance Initiative. Archived (PDF) from the original on 1 September 2022. Retrieved 21 May 2022.
^ "Global sustainable investing assets surged to $30 trillion in 2018". Greenbiz. Archived from the original on 9 August 2021. Retrieved 9 August 2021.
^ Hardyment, R. (2024). Measuring Good Business: Making Sense of ESG Data. Abingdon, Oxon: Routledge. ISBN 978-1032601199.{{cite book}}: CS1 maint: date and year (link)

[1] Gelles, David (28 February 2023). "How Environmentally Conscious Investing Became a Target of Conservatives". The New York Times. ISSN 0362-4331. Archived from the original on 2 March 2023. Retrieved 2 March 2023. ... investing principle known as E.S.G. — shorthand for prioritizing environmental, social and governance factors

[2] "Who Cares Wins – The Global Compact Connecting Financial Markets to a Changing World" (PDF). UN Environment Programme – Finance Initiative. Archived (PDF) from the original on 1 September 2022. Retrieved 21 May 2022.

[3] "Global sustainable investing assets surged to $30 trillion in 2018". Greenbiz. Archived from the original on 9 August 2021. Retrieved 9 August 2021.

[:2-4] Hardyment, R. (2024). Measuring Good Business: Making Sense of ESG Data. Abingdon, Oxon: Routledge. ISBN 978-1032601199.{{cite book}}: CS1 maint: date and year (link)

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