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WHY is ESG Important to Business
Social criteria (S)
Investors looking at a company’s ESG will want to see that it is accurate and transparent in its accounting and reporting methods. Investors will also look at how a company treats its shareholders and their right to vote on important issues. Investors will seek assurances that
the company doesn’t engage in illegal practices and avoids conflicts of interest when it chooses its board members.
Investors now understand that environmental, social, and governance criteria go beyond ethical concerns. With robust ESG criteria, companies can avoid practices that involve risk. Investors and investment firms look for ESG-minded companies and financial services companies like Goldman Sachs and JPMorgan Chase now publish annual reports that review the ESG approaches of various companies.
