ESG stands for Environmental, Social and Governance.
To break it down further (but not limited to):
Environmental dimensions may be: Climate Stability; Climate Change Action; Water and Waste Management; Natural Resources; Energy Efficiency; Greenhouse Gas Emissions & Reductions; Circular Economy.
Social dimensions may be: Diversity and Inclusion; Human Capital Management; Working Conditions – Labour Standards'; Health and Safety; Human Rights; and Eradicating Modern Slavery.
Governance dimensions may be: Risk Management; Transparency – Reporting and Disclosure; Anti-Bribery and Corruption; Board Structure and Decision-Making Process Across the Board; and Cybersecurity.
When you consider measures for how companies have integrated ESG frameworks into the way they conduct business, this is termed as Responsible Investing.
If your goal includes tailoring your investments to have some ESG exposure or to be solely focused on ESG investing, talk to us about how we may be able to provide you with recommendations to suit your investment needs and timeframes. You can also learn more about ESG investing at Environmental Social Governance (ESG) investing - Moneysmart.gov.au.
As the demand for ESG investing increases, we may be able to assist you to invest in companies that provide greater clarity of accountability, standards and practices in place, that are working towards more positive outcomes for the world including the flora and fauna, all humans and the creatures that inhabit it.