What do sustainable investment and ESG mean?
The abbreviation ‘ESG’ is often used in connection with sustainability matters and sustainable investments. It stands for environmental, social and governance.
These refer to concerns related to environmental and social responsibilities as well as good governance. In the corporate world, sustainability is reflected in business models, which indicate how companies' products and services support sustainable development. Sustainability is also part of corporate risk management – how companies minimise negative impacts in their own operations.
Sustainable investment means considering the aforementioned ESG factors in investing.