How ESG scores give insight into a company’s environmental impact

ESG scores are critical tools for investors who practice ESG investing.  If you want to incorporate your values into your investment strategies, ESG scores can help you evaluate a company’s commitment to the three legs of the ESG scoring model.

ESG stands for environmental, social, and governance and investors apply these non-financial factors as part of their risk analysis.

Companies utilize ESG scoring to measure their exposure to long-term ESG risks. As public and shareholder pressure on corporations increases, weighing ESG risk is becoming increasingly important to investors and companies alike.

Published by Jim Probasco in Business Insider.