Financial Times – Portfolio Manager Tony Trzcinka describes how he weeds out unsuitable green bonds and shares his preferences on disclosure and reporting standards in this article about changes in the green bond market.
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.