ESG Is Not ‘Ethical Investing.’ And That’s OK.
As enthusiasm about ESG investing has been on the rise, so too has controversy. ESG is an acronym that refers to the environmental, social and governance considerations relating to investing. It’s an approach that, by some estimates, may become integrated into half of all U.S. managed accounts by 2025.
Why should investors and companies care about ESG? The argument is that in the long run, those risks will impact the business — companies that consider these non-financial, yet material, metrics in their