Financial Times – Impax CEO Ian Simm discusses ESG fund labels in this article about the SEC’s forthcoming rulemaking on climate disclosures.
Environmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. Environmental criteria consider how a company performs as a steward of nature. Social criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. Governance deals with a company’s leadership, executive pay, audits, internal controls, and shareholder rights.
Investments involve risk, including potential loss of principal.