Many people hear the term ESG investing and think only of the ‘E’ and therefore it must pertain to the environment.

But, that’s not entirely true. So what does ESG really mean?  

  • Environmental – companies that focus on environmental factors such as renewable energy sources, reducing the carbon footprint, reducing emissions, etc.
  • Social – companies that focus on social issues such as consumer and workplace safety
  • Corporate Governance – companies that make a positive impact

Corporate governance often gets the least recognition. Perhaps because many don’t understand the benefits. Companies with good governance operate in ways that are fair and ethical and have a clear balance of power.  It’s directly related to both environmental and social factors.

Why would good governance be a good investment? In a recent Forbes piece, FundX’s Janet Brown tells you why. Click here for the full article.