The first thing to know about an ESG (environmental, social, and governance) rating is that it is given to both countries and companies. Certain investors use the ESG rating to determine if they wish to invest in a company or within a country. The E of ESG or environmental corresponds to how an investee protects the environment and includes national or corporate policies addressing climate change. The latter seems to be the weightiest of all environmental assessments. S or Social investigates how the investee manages relations with employees, suppliers, customers, as well as the communities in which it operates. In some cases, investors consider ‘woke’ policies as well. Governance deals with the investee’s leadership, executive pay, audits, and the rights of a shareholder.
Environmental Inquisition
Environmental Inquisition
Environmental Inquisition
The first thing to know about an ESG (environmental, social, and governance) rating is that it is given to both countries and companies. Certain investors use the ESG rating to determine if they wish to invest in a company or within a country. The E of ESG or environmental corresponds to how an investee protects the environment and includes national or corporate policies addressing climate change. The latter seems to be the weightiest of all environmental assessments. S or Social investigates how the investee manages relations with employees, suppliers, customers, as well as the communities in which it operates. In some cases, investors consider ‘woke’ policies as well. Governance deals with the investee’s leadership, executive pay, audits, and the rights of a shareholder.