This board seeks to advance the discussion surrounding the intersection of ESG practices, Asset Management and Leadership, Integrated Reporting, and more.
What Is Environmental, Social, and Governance (ESG) Investing?
Environmental, social, and governance (ESG) investing refers to a set of standards for a company’s behavior used by socially conscious investors to screen potential investments.
Environmental criteria consider how a company safeguards the environment, including corporate policies addressing climate change, for example. Social criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. Governance deals with a company’s leadership, executive pay, audits, internal controls, and shareholder rights.
Example ESG Criteria:
- Publishes a carbon or sustainability report
- Limits harmful pollutants and chemicals
- Seeks to lower greenhouse gas emissions and CO2 footprint
- Uses renewable energy sources
- Reduces waste
- Operates an ethical supply chains
- Avoids overseas labor that may have questionable workplace safety or employ child labor
- Supports LGBTQ+ rights and encourages all forms of diversity
- Has policies to protect against sexual misconduct
- Pays fair (living) wages
- Embraces diversity on board of directors
- Embraces corporate transparency
- Someone other than the CEO is chair of the board
- Staggers board elections
Above text from Investopedia: