Compliance with Environmental, Social, and Governance (ESG) Requirements

Environmental, Social, and Governance (ESG) has gained increasing attention over the past few years. Today many institutional investors only invest in those companies that provide ESG performance reporting.

ESG criteria provide a set of standards for a company’s operations that today’s socially conscious investors use to screen potential investments.

• Environmental criteria look at how a company performs as a steward of nature in protecting the planet.
• Social criteria examine how the company manages relationships with employees, suppliers, customers, and the communities where it operates.
• Governance deals with a company’s leadership, the pay of its executives, audits, internal controls, and shareholder rights.

ESG criteria are an increasingly popular way for investors to evaluate companies in which they might want to invest.

Using ESG criteria can also help investors avoid companies that could pose a greater financial risk due to below par environmental or other practices.

ESG has considerations relevant to analysts and investors, consumers and employees, and has become a major topic of discussion at Board meetings.