What does ESG mean?

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ESG stands for Environmental, Social and Governance.

In recent years, this new kind of sustainable investing has taken shape. This strategy uses integrated reporting to see the material impact of a company’s environmental, social, and governance (ESG) policies on its bottom line. Historical data suggests that ESG strategies, “when integrated into investment analysis and decision making, may offer investors potential long-term performance advantages.”*

 

*Source: http://www.theguardian.com/sustainable-business/2014/nov/19/10-things-social-environmental-investing-finance

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