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Basics of Responsible Investing: ESG Data

Responsible Investing decisions are made based on ESG data, information about the environment, society, and governance. Certainly conventional information about the company is important, but with ESG data, companies are distinguished with regard to their destructive or non-destructive behaviors.

A brief explanation of each of the areas in ESG data below with more detailed articles about each should show how Responsible Investing can integrate with your values

concerns may be the most obvious of the categories given the daily news regarding global warming and pollution. For example, carbon dioxide and the other greenhouse gases emitted by autos, manufacturing, and farming are seen as a serious threat to all people. Given that the environmental movement has been active for several decades, there are many great options for investing in an environmentally friendly way.

concerns focus on how a business affects society. Also known as social justice, this area of Responsible Investing is where people, societies, and cultures of the world are accounted for and protected. Issues included in this category are sweat shops, predatory lending, native lands, and various forms of corporate hoarding.

is a lesser known, but potentially the most potent of the Responsible Investing categories. Here we are talking about the way corporations are managed. Issues here include corporate transparency, executive compensation, and general corporate decision making.

This was a brief description of ESG categories, check out the detail descriptions of each.