ESG definition and basics - why ESG provides "double dividends"

What does ESG mean? What is the definition of ESG and why invest according to its criteria? Investors have been asking these questions and wondering if ESG is the same as CSR. Or how it compares to socially responsible investing and impact investing. If you want to know what ESG means, this guide provides a comprehensive definition of the term. It will also help you understand why using ESG criteria when investing is worthwhile.

ESG definition and meaning

ESG stands for Environmental, Social, and Governance . It refers to the three main criteria used to measure the sustainability of an investment in a business or project. ESG is a general term used by investors to evaluate the behavior of companies and predict their future financial performance. Most socially responsible investors review companies using ESG criteria to screen investments. (Jennifer L, carboncredits.com)