The surging demand of ESG (environmental, social, and governance) criteria has made impact investing more common. At the same time, it creates more exacting standards for corporations and brokerage firms to comply with.
About Environmental, Social, and Governance (ESG) Criteria
ESG investing—also known as impact investing, sustainable investing, and socially responsible investing (SRI)—is the practice of investing in organizations that follow environmental, social, and governance criteria. These investors want to contribute their funds toward companies they feel act responsibly, and certain criteria are used to measure that.