What is ESG Investing?

ESG stands for environmental, social, and governance. ESG investing adds factors like greenhouse gas emissions to financial metrics such as revenues or profits. It is also called socially responsible investing (SRI), sustainable investing, and impact investing.

The explosion of interest in ESG dates back to the 2015 Paris Agreement. The Agreement’s signatories pledged to limit the increase in global temperature to under two degrees Celsius above pre-industrial levels.