What is ESG?

Environmental, Social and Governance (ESG) refers to the three central factors in measuring the sustainability and societal impact of a company or business.

What is ESG investing?

• Investors are applying Environmental, Social and Governance factors in their analysis process.
• ESG metrics are not commonly part of mandatory financial reporting, but companies are increasingly making disclosures in their annual report or in a standalone sustainability report. 
• The coronavirus pandemic has intensified discussions about the interconnectedness of sustainability and the financial system, leading to bigger inflows to ESG funds.

Why consider ESG criteria when investing?

The world is changing and sustainability in business practices is becoming a priority. Companies that are willing and able to adapt to such changes are likely to grow the most in the future and generate superior investment returns. By investing in funds that follow ESG criteria, you can make a socially conscious choice to support such companies and participate in potential extra gains of such investments.