The (G) in “ESG”
ESG stands for Environmental, Social and Governance. ESG criteria is used to vet a company’s practices in regard to the environment and communities.
The “G” in ESG looks at an organization’s corporate governance
Governance (or corporate governance) refers to the company’s leadership and board structure.
Good corporate governance is important to the development of companies and provides long-term benefits for shareholders, employees and society.
- Board structure and gender diversity
- Avoidance of board member conflict of interest
- Accurate and transparent accounting methods
- Shareholder voting
- Corruption and supply chain management
- Executive compensation transparency
- C-Suite and management turnover
- Avoidance of political contributions to gain favorable treatment
The use of ESG criteria is becoming more common as investors aim to see their asset and investment planning generate long-term competitive growth and a positive impact on society.
Sherpa Wealth Strategies understands your values lead your life, and therefore have a place in your investment strategy. If SRI or ESG investments are of interest, talk with your financial advisor about how we can implement sustainable investing as a core holding or a complementary strategy.
All investing involves risk including loss of principal. No strategy assures success or protects against loss.