An ESG Investment refers to an investment and decision-making process that considers environmental, social, and governance factors alongside financial performance.
The term was first coined in 2004 by the Swiss Federal Department of Foreign Affairs and the United Nations Global Compact, and has since become popular among investors who value more than financial returns. ESG factors cover issues beyond financial analysis, from water management and conservation practices to health and safety policies for workers.
- Who Cares Wins – Connecting Financial Markets to a Changing World, Swiss Federal Department of Foreign Affairs and the United Nations Global Compact, 2004.
- The Remarkable Rise of ESG, Georg Kell, Chairman of Arabesque, in Forbes, 8/11/18