ESG investment

Environmental, Social and Governance-based investment.

An investment approach which takes explicit account of the environmental, social and corporate governance aspects of all proposed investments.

ESG performance correlated with better financial returns

Once controlled for systematic risk, there is a significant positive relationship between ESG performance and financial returns – this has changed considerably over the last few years when it was seen as a trade-off.

Association of Corporate Treasurers, International Treasury Week, 14 May 2020.

See also

• B Corporation
• Carbon footprint
• Carbon Trust
• Corporate engagement and shareholder action
• Corporate governance
• Corporate social responsibility
• ESG bond
• ESG integration
• ESG ratings
• ESG stock
• I&E
• Impact investing
• Negative screening
• Norms-based screening
• Positive screening
• SRI
• Sustainability
• Sustainability themed investing
• Systematic risk

Other links

A practical insight into green bonds and ESG investing, The Treasurer web exclusive, June 2019