(ESG) is an acronym that stands for Environmental, Social, and Governance. These non-financial factors are increasingly being used by investors in their analysis process to identify material risks and growth opportunities.
Multiple issues fit into the umbrella categories of environmental, social and governance. Those can include:
Environmental
Preservation of our natural world
- Climate change
- Carbon emission reduction
- Water pollution and water scarcity
- Air pollution
- Deforestation
Social
Consideration of humans and our interdependencies
- Customer success
- Data hygiene and security
- Gender and diversity inclusion
- Community relations
- Mental health
Governance
Logistics and defined process for running a business or organization
- Board of directors and its makeup
- Executive compensation guidelines
- Political contributions and lobbying
- Venture partner compensation
- Hiring and onboarding best practices