Perspectives & Insights Article

The rapid growth of environmental, social and governance (ESG) investing over the past decade has been a galvanizing force in making companies consider the interests of all “stakeholders” in their business decisions, rather than only shareholder interests.

The carbon footprint of a company factors heavily into its Environmental rating — both the amount of carbon generated as a result of a company’s operations, as well as the carbon impact of the company’s finished goods or services...

As defined by Sustainalytics, a firm focused solely on providing ESG research on publicly-traded companies, Governance analysis is an evaluation of how well a company is structured and managed in order to “build sustainable, long-term value that can be delivered to shareholders and other stakeholders in a fair and transparent manner”...

Social factors encompass a wide range of topics related to how a company impacts all of its “stakeholders,” including employees, customers, and the communities in which it operates...

Environmental, Social and Governance (ESG) investing has gained popularity in recent years as both individual and institutional investors are embracing sustainable investing and integrating ESG analysis into the investment decision-making process. There is also evidence that aligning investors’ desire for return with the needs of other stakeholders, including customers, employees, and local communities, can be a winning combination...

Socially responsible investing (SRI) is becoming an increasingly important topic as investors evolve their thoughts on which corporate attributes will deliver above-average returns for shareholders. In fact, Pension and Investments recently reported that market share for SRI funds in Europe accounts for over 50 percent of assets under management, indicating an increasing willingness for investors to make SRI allocations within their portfolios.