Strategy & planningFAQs

What does 'ESG' stand for / mean?

ESG stands for Environmental, Social and Governance and covers the following issues of interest to investors:

  • Environmental issues such as: climate change, biodiversity loss, local air quality, resource consumption etc.
  • Social issues such as: human rights, employee welfare, local community relations etc
  • Corporate governance issues such as board and ownership structure, investor communications and remuneration

What does 'ESG' stand for / mean?

 

Some would argue that the term 'ESG' excludes two aspects of sustainable investment:

  • The 'ecoomic' dimension of sustainabiilty - that incorporates factors such as national economic stability, local economic growth etc.
  • The 'ethical' dimension - that incorporates issues of moral concern to some investors such as abortion rights, animal testing, lending at interest etc.