Part of a series on |
Governance |
---|
Environmental, social, and governance (ESG) is shorthand for an investing principle that prioritizes environmental issues, social issues, and corporate governance.[1] 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 2023, the ESG movement had 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]
... investing principle known as E.S.G. — shorthand for prioritizing environmental, social and governance factors