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An Overview of ESG Investing

An infographic that provides an overview and explanation into ESG Investing

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An Overview of ESG Investing

  1. 1. * Topics: Ready or Not, Here Comes the Great Wealth Transfer Environmental Performance conserving and protecting the environment. Social Relationships with employees, customers, vendors and communities at large. Governance Board- and management-level policies, compensation and composition. Socially conscious investors review a company’s environmental, social and governance (ESG) performance to help establish its investment value. Broadly speaking, ESG reviews involve: Environmental • Carbon footprint • Climate policies and strategies • Energy consumption • Reducing, reusing, recycling • Relationship with EPA • Renewable Energy • Sustainable Products and Services • Waste disposal • 71 million strong, Millennials value social responsibility. • Baby Boomers are passing down nearly $60 trillion to Millennials.* • High-scoring companies have strong long-term growth potential. • High-scoring companies have less exposure to catastrophic risks. Definition of ESG Why ESG Investing Will Remain Popular Important ESG Criteria Social • Cyber Security • Data Security • Diversity of workforce • Employee pay, benefits, perks • Human Capital Management • Mission • Positions on public issues • Privacy • Safety • Training • Treatment of customers • Turnover Governance • Compensation metrics focused on long-term • Conflicts of interest • Diversity of board • Executive compensation, bonuses, perks • Proxy access • Record of shareholder lawsuits • Relationship with SEC • Transparency How to Improve ESG Scoring Institutional investors have complex processes for evaluating ESG Develop an ESG reporting and communication framework Set ESG goals and measurements Establish ESG responsibility and teams ESG investing — sometimes referred to as socially responsible investing — is a critically important concept to the investment community as well as issuers seeking to maximize value and improve the impacts of doing business. An Overview of ESG Investing