What socially responsible (aka ESG - environmental, social, and governance) investing?
ESG criteria — like a company’s enviro-impact, board diversity, and/or exec compensation — is used by some firms and investors to evaluate companies for funds or personal portfolios.
10X: Investors contributed $51B to sustainable funds in 2020, compared to less than $5B five years ago.
90% of Millennial investors say they believe in sustainable investing, according to a 2019 report.
$285B: How much ESG funds grew last year — nearly double their 2019 value.
the SEC said it may require companies to report climate-risk info along with their annual earnings. Think: emissions metrics and progress toward climate goals. In recent years, companies have been doubling down on ESG initiatives — especially environmental ones. The next step in ESG is validation… Many aspects of ESG investing still aren't well-defined. Dozens of sources share company ESG scores, but many use different criteria that can be tough for companies to measure.