What is ESG?

 
Environmental, Social, and Governance (ESG) investing is a framework for evaluating companies based on their environmental impact, social responsibility, and corporate governance practices. In essence, it's a way to help assess how well a company is managing its impact on the planet, its relationships with people, and its internal management structures.

ESG investing recognizes that businesses don't operate in isolation; they exist within broader societal and environmental contexts. By considering factors like carbon emissions, waste management, labor practices, diversity and inclusion, executive compensation, and board diversity, ESG analysis helps provide investors with a more holistic view of a company's operations and its potential long-term performance.

Investing with ESG principles isn't just about "doing good" - we believe that companies with strong ESG practices tend to be more resilient and better positioned for sustainable growth over the long term. For investors, integrating ESG considerations into their investment decisions can help manage risks, identify opportunities, and align their portfolios with their values.¹