Environmental, Social, and Governance

Environmental, Social, and Governance (ESG) criteria are a set of standards for corporate operations and behavior which are used by socially conscious investors to screen investments. Over the past several years, there has been a growing effort for a more mainstream incorporation of ESG factors into investment practices. The growing emphasis by investors on ESG factors has created downward pressure on companies to provide disclosures as to how ESG factors are being incorporated into business and operational decisions. Today, the most commonly discussed ESG areas include discussions about the environmental impacts of corporate operations, the disclosure of lobbying and political spending, and the disclosure of gender pay information.