Every company has a different prerogative, but some prioritize operations and initiatives that improve society. Individuals who want to invest in those types of companies can engage in what’s called ESG investing. Also known as environmental, social, and governance investing, ESG investing gives people the chance to put their dollars in companies that align with their personal values. That said, ESG investing has its challenges such as expensive fees and a lack of standardized data, which investors need to make informed decisions. What is ESG Investing? ESG investing is about putting dollars in a company that meets certain criteria relating to social good. Investments are given an ESG score, which measures how sustainable the investment is and the social impact it has. This type of investing can be a way to hold companies accountable and also a way for investors to put money into companies that have the potential to create positive impacts long-term. The idea is also that a company holding itself to ESG standards is likely built on a strong foundation and will perform well over time. Some investors see those companies as
By Stephen L. Thomas | January 11, 2024 | In