Investing In A Better Future With ESG Investing
One of the topics that generates the most heated discussion among institutional investors and in corporate boardrooms is the purchase of shares with a high environmental, social, and governance profile, or ESG investment.
But ESG does much more than only utter platitudes. Endowments and foundations used ESG criteria in investment decision-making at a rate of 42% in 2019, according to a new Callan Institute analysis.
The infographic below, titled An Overview of ESG Investing, discusses the primary causes of this rise in interest in ESG investments. Any investor who wants to learn more about ESG, as well as any business looking to boost its value and possibilities for raising finance, should start by reading the infographic.
It is well known that Millennials, who already exert a significant and growing influence over investment, highly value consideration of how businesses are conducted. Less is known about the connection between socially responsible corporate practices and greater earnings and investment opportunities.
Companies with high ESG scores are less likely to experience regulatory fines, shareholder revolts, public scandals, and other potentially negative, value-destroying events. Employers who place a high priority on ethics have lower employee turnover rates and more productive, motivated workforces. High-scoring ESG companies are the best long-term investment opportunities due to these and other characteristics. For more information, consult the pertinent source.