VIDEO

WHAT IS ESG?

Environmental, social, and governance (ESG) data can be used as a guide for when making decisions around sustainable investing. In this video we break down each piece of the term and show why ESG can be an important factor in strategic investing.

Learn more below

What is ESG?

ESG stands for Environmental, Social and Governance. ESG data is used to inform and guide investors on how to invest sustainably and can help investors quantify the impact of their investments on environmental, social and governance factors.

Environmental (E): Covers themes such as climate risks, natural resources scarcity, pollution and waste, and environmental opportunities.

Social (S): Includes labor issues and product liability risks such as data security and stakeholder opposition.

Governance (G): Encompasses items relating to corporate governance and behavior such as board quality and effectiveness.

ESG considerations that are material will vary by investment style, industry, market trends and objectives. ESG data is most often categorized as “non-financial” information as it captures components important for valuations that are not traditionally reported. Valuation of companies has become more complex, with a growing portion tied up in intangible assets. ESG metrics provide insights into these intangibles, such as brand value and reputation, by measuring decisions taken by management that affect operational efficiency and future strategic directions.

What is ESG?

ESG stands for Environmental, Social and Governance. ESG data is used to inform and guide investors on how to invest sustainably and can help investors quantify the impact of their investments on environmental, social and governance factors.

Environmental (E): Covers themes such as climate risks, natural resources scarcity, pollution and waste, and environmental opportunities.

Social (S): Includes labor issues and product liability risks such as data security and stakeholder opposition.

Governance (G): Encompasses items relating to corporate governance and behavior such as board quality and effectiveness.

ESG considerations that are material will vary by investment style, industry, market trends and objectives. ESG data is most often categorized as “non-financial” information as it captures components important for valuations that are not traditionally reported. Valuation of companies has become more complex, with a growing portion tied up in intangible assets. ESG metrics provide insights into these intangibles, such as brand value and reputation, by measuring decisions taken by management that affect operational efficiency and future strategic directions.

Learn more about ESG

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