ESG Investing
The longevity of any company is tied to its commitment to environmental friendliness which often leads to reduced costs and increased efficiencies. Social considerations like fair treatment of employees and strict governance standards, such as a fairly represented Board of Directors or clearly delineated roles of shareholders and stakeholders.
Governance is commonly the most overlooked of the three ESG factors. Yet, a strong corporate governance system of principles, policies and procedures is necessary in order to resolve potential conflicts and risks inherent in a corporation. A robust corporate governance system is, therefore, essential to reducing operational risk and increase sustainability within organizations. In addition, we’ve found that a strong score in Governance positively effects Environmental and Social scores.