Environmental, Social, and Governance
What Is ESG Investing? ESG stands for Environmental, Social, and Governance. Investors are increasingly applying these non-financial factors as part of their analysis process to identify material risks and growth opportunities.
How do professional investors encourage companies to improve? By engaging with them. Whether it is lobbying for change, voting at an AGM or holding private meetings with management, there are plenty of ways that fund managers can help businesses boost their ESG credentials.
Engaging with companies helps them avoid controversies or litigation battles, improves their reputation and transparency, and enables planning for a more sustainable future.
Marion Plouhinec, senior ESG analyst at L&G, says engagement has never been so important as the Covid-19 pandemic has highlight the importance of good corporate governance, social practices and the need to care for the environment. “The crisis has shown that good ESG practices matter,” she says. "We continued to engage with companies last year and held digital meetings to talk about the impact of Covid, their strategies and human capital."
BlackRock Chairman and CEO Larry Fink joins "Squawk Box" to discuss the asset manager's position on environmental, social and governance (ESG) issues when making investment decisions.
Learn the basics of ESG investing with this short introduction from Deutsche Bank Wealth Management, including four key approaches designed to align your portfolio with your principles.
Blackrock Chief Executive Officer Larry Fink sat down with Bloomberg Editor-in-Chief John Micklethwait at The Year Ahead Davos luncheon to discuss Fink’s annual letter to CEOs about how corporations can work with governments and shareholders to confront climate change.
