Finance Monthly - August 2023

Understanding ESG Investing As more investors look for options that align with their values, ESG investing has gained popularity. But what exactly is ESG investing? ESG stands for Environmental, Social, and Governance. ESG investing involves considering these factors when making investment decisions. Investors seek companies that prioritize sustainability, social responsibility, and ethical leadership. When it comes to environmental factors, ESG investing looks at how companies manage their impact on the planet. This includes assessing their carbon emissions, water usage, waste management practices, and efforts to reduce their environmental footprint. Investors want to support companies that are committed to protecting the environment and transitioning to more sustainable practices. On the social front, ESG investing focuses on how companies treat their employees, customers, and communities. Investors consider factors such as diversity and inclusion, labour practices, human rights, and community engagement. They want to invest in companies that prioritize fair and equitable treatment of all stakeholders and contribute positively to society. Lastly, governance refers to how companies are managed and governed. ESG investors look at factors such as board composition, executive compensation, shareholder rights, and transparency in financial reporting. They want to invest in companies that have strong corporate governance practices and prioritize accountability and integrity. Finance Monthly. Investment 61

RkJQdWJsaXNoZXIy Mjk3Mzkz