“ESG” describes a set of environmental, social and governance factors used to measure sustainability and long-term value beyond traditional financial measures. ESG topics increasingly are the focus of asset managers, asset owners such as pension funds and insurance companies, and other investors, as well as proxy advisory firms, index providers, regulators and rating agencies. ESG themes now routinely figure on agendas of corporate boards of directors and corporate management teams.
There is no single definition of ESG and no single set of ESG standards or metrics. We highlight below the topics commonly covered within the three categories of ESG and provide definitions of some of the key terms used in ESG disclosures, reports and regulations. Continue Reading ESG Lexicon