ESG stands for “Environmental, Social and Governance”. These three central factors are used in order to measure the sustainability and ethical impact of an investment in a company.
The main drivers are concerns regarding the environmental situations like climate change, nuclear energy or the sustainability in general. But also social concerns like diversity, human right, consumer protection or animal welfare, corporate governance concerns lie the management structure, employment relations, compensation of staff and executive as well as questions of responsible investments are taken into account. In the financial world the ESG is leading to a score or rating, taking the above factors into account and represent the corporate’s general responsibility.