ESG - Environmental, Social and Governance Investing
ESG (or ‘responsible investment’) is an investment approach that incorporates environmental, social and governance (ESG) factors, along with broader systemic issues, into investment decision-making and active ownership processes, in addition to or in combination with traditional fundamental financial research.
Canadian fund managers and advisory firms have a long history of providing ESG or responsible investment products and services to their clients, in some cases, going back decades. In recent years, there has been considerable interest in this approach to investing. The growing popularity of ESG and responsible investing funds has led to industry discussions about the need to develop clear, consistent terminology and definitions.
