There is growing evidence that suggests ESG factors, when integrated into investment analysis and decision making, may offer potential long term advantages to investors.
Socially Responsible Investing (SRI) is an established framework and methodology for maximizing your asset value while attending to your environmental, social, and corporate governance (ESG) concerns. The SRI industry uses ESG categories to organise financial analysis and planning. Below is brief understanding of these factors:
ENVIRONMENTAL concerns may be the most obvious of the categories given the daily news regarding global warming and pollution. Harmful gases emitted by autos, manufacturing, and farming are seen as a serious threat to all people. Given that the environmental movement has been active for several decades, there are many great options for investing in an environmentally friendly way.
SOCIAL concerns focus on how a business affects society. Also known as social justice, this area of SRI is where people, societies, and cultures of the world are accounted for and protected.
CORPORATE GOVERNANCE is the way corporations are managed. Issues here include corporate transparency, executive compensation, and general corporate decision making.
At Legae we understand the importance of ESG and are committed to providing research and information, that acknowledges the ESG factors in our business.