ESG Investing for dummies Brendal Bradley

ESG stands for environmental, social, and governance, and perhaps the reason for your interest is the growing evidence that ESG factors can be integrated into investment analysis and portfolio construction to offer investors long-term performance advantages.

Also, ESG criteria are used by socially conscious investors to screen investments and assess a company’s impact on the world.

With growing action from governments, companies, and investors to consider environmental and societal impacts, it seems inevitable that ESG considerations will be included in all of our investment decisions at some point in the future. Given that companies with high ESG ratings exhibit a lower cost of capital, less volatile earnings, and lower market risk than companies with low ESG ratings, sustainability should be our new standard for investing.