Demand for environmental, social and governance (esg) investing is growing in Australia and globally as people look for assets that do no harm, respect our planet, improve our lives and meet our social mores.

What is the criteria for environmental, social and governance investing?

According to Investopedia, in general terms, the criteria for meeting ESG status is a set of standards that meet socially conscious investor expectations in relation to;

  • The natural environment
  • Business relationships with employees, suppliers, customers and communities
  • Corporate leadership in industry with a focus on shareholder rights and Board independence

The benefits of employing ESG criteria in selecting investments is the potential to reduce financial risk due to poor, unsustainable practices.