ESG investing is gaining traction, and it’s no wonder. Research increasingly shows that this investing method can reduce portfolio risk, generate competitive investment returns, and help investors feel good about the stocks that they own.

But first, what is it? In short, ESG investing is the consideration of Environmental, Social and Governance factors alongside financial factors in the investment decision–making process.

Here are a few of the factors that are incorporated into an ESG Framework:

Environmental

  • Climate Change and Greenhouse Gas Emissions
  • Carbon Footprint
  • Natural Resources
  • Pollution and Waste
  • Renewable Energy, such as wind and solar

Social

  • Employee policies
  • Product Liability
  • Stakeholder Opposition
  • Social Justice Opportunities

Governance

  • Corporate Governance
  • Corporate Behavior
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