Adopting environmental, social, and governance (ESG) principles means a business' corporate strategy includes ethical environmental, social, and governance policies. This means taking measures to lower pollution and carbon dioxide output, giving back to the local community, as well as having a diverse and inclusive workforce (both at the entry level and on the board of directors), among other efforts.<\/p>" } } , { "@type": "Question", "name": "How Is ESG Investing Different From Sustainable Investing?", "acceptedAnswer": { "@type": "Answer", "text": "
ESG and sustainability are closely related. ESG investing screens companies based on criteria<\/a> related to social justice, environmental concerns, and good corporate governance. Together, these features can lead to sustainability. ESG, therefore, looks at how a company's management and stakeholders make decisions; sustainability considers the impact of those decisions on the world.<\/p>"
}
}
,
{
"@type": "Question",
"name": "How Do I Know Which Investments Are ESG?",
"acceptedAnswer": {
"@type": "Answer",
"text": " Several financial firms have ESG ratings and scoring systems. For instance, as of June 30, 2024, MSCI has a rating scheme<\/a> covering over 17,000 companies, giving them scores and letter grades based on their compliance with ESG standards and initiatives<\/a>.<\/span> Several other companies, such as Morningstar and Bloomberg, have also created criteria for scoring companies<\/a> based on ESG objectives.<\/span><\/span><\/p>"
}
}
]
} ] }
]