Phantasm
Banned
Investors are increasingly interested in sustainability, ethical practices and the creation of long term value through the incorporation of Environmental, Social and Governance (ESG) factors into investment decision-making. The necessary steps to integrate ESG considerations include understanding ESG principles, identifying material ESG factors, conducting ESG due diligence, applying ESG data and metrics in decision making processes, interacting with firms via proxy voting as well as diversifying one’s portfolios. Some major principles of ESG include climate change, human rights , corporate governance and transparency issues. Materiality is dependent on each industry and location thus leading to distinct preferences for stakeholders. In relation to ESG due diligence that means evaluating how companies handle risks associated with environmental social governance (ESG), controversies and conformity to industry norms. Accessing trusted sources of information about ESG data allows finding out more about key areas through which it can be obtained or focusing on what matters most while engaging with the company’s management team concerning its corporate social responsibility initiatives. Making investments based on consideration for these factors brings positive societal changes as well as environmental safety apart from good returns in future.
