Five ways that ESG creates value

Environmental, social, and governance (ESG) is a rating used by asset managers to help socially conscious investors decide which companies to invest in. As the name suggests, it’s an overall score given to companies based on how well they behave in three important areas of business.

The ethical investment movement has exploded in recent years, as an increasing number of investors have begun to care a little less about maximizing returns and a bit more about ensuring positive outcomes for people and the planet. A 2021 PWC survey found that sustainable investing is worth more than $30 trillion globally, growing by $5 trillion in the United States alone between 2018 and 2020.

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