With all the changes in the world today, consumers are becoming more and more knowledgeable on the companies with which they choose to interact and do business.
Consumers are turning more and more to environmental, social and governance (ESG) standards to help them in their decision making – in everything from which stores to stop at, what kinds of cars to buy, and even where and how to invest.
Kiplinger discussed a recent study on ESG considerations, which found that of the ESG standards, investors cared most about environmental concerns, but social issues and governance weren’t far behind. Although investors stated these issues were important to them, not all are “walking the walk.” Some said it was due to research, others said they questioned the transparency of companies while still others said there was no uniformity to ESG standards for a company to follow.
Investors may not be “putting their money where their mouth is” 100% of the time, but ESG considerations continue to be important. Moving forward companies will likely want to ensure their practices are transparent. Thanks to social media and global news at our fingertips, investors are more aware than ever of the needs and changes taking place worldwide. ESG factors will continue to gain in importance.
You can find Kiplinger’s piece here.