What is the definition of ESG? ESG means using Environmental, Social and Governance factors to assess the sustainability of companies and countries. These three factors are seen as best embodying the three major challenges facing corporations and wider society, now encompassing climate change, human rights and adherence to laws. It now forms the bedrock of sustainable investing, since ESG factors are fairly objective and easy to apply to analysis of a company’s products, services and behavior.
ESG factors: Environmental
Environmental factors cover pollution, greenhouse gas emissions, waste generation, energy efficiency and the impact on biodiversity. The need to tackle climate change led by lowering emissions to achieve net zero by 2050 has made this factor much more important than simply looking at primarily localized issues such as pollution of waste disposal.
ESG factors: Social
Social factors include attitudes to diversity and labor standards at a company’s main operating centers and in its supply chains, along with more routine issues such as workplace health and safety. In extreme cases it can relate to the use (wittingly or otherwise) of child or forced labor, and wider human rights issues such as sourcing from conflict areas.
ESG factors: Governance
Governance factors cover how well a company is managed, from boardroom diversity and gender equality, to being free from corrupt practices. Good governance also includes how well capital is distributed, how external or minority shareholders are treated, and whether the firm adheres to recognized standards regarding accounting and risk.
¿Qué puntuación de sostenibilidad tienen las empresas y los países?
Explore las contribuciones de las empresas a los Objetivos de Desarrollo Sostenible y la clasificación de los países en función de criterios ASG.
3 pillars of ESG
Inversión Socialmente Responsable
Integramos criterios ambientales, sociales y de gobierno corporativo en los procesos de inversión de la mayoría de nuestras estrategias, cuantitativas y por fundamentales.