Sustainable investing provides a mechanism for customers to align their personal values with their investment objectives and choose investment products that are meaningful to them.
Environmental
The environmental component requires research into a variety of elements that illustrate a company's impact on the Earth, in both positive and negative ways.
Evaluating a corporation's environmental record could include:
- Climate change risk exposure
- Carbon emissions and energy use
- Water-related issues and goals such as usage, conservation, overfishing, and waste disposal
- Pollution and waste
- Environmental opportunities; clean tech
Social
The social component consists of people-related elements like company culture and issues that impact employees, customers, consumers, and suppliers.
Evaluating a corporation's social record could include:
- Diversity and inclusion
- Labor management
- Product liability
- Stakeholder opposition
- Social opportunities in finance and healthcare
Governance
The corporate governance component relates to the board of directors; how the business is run, and whether the corporate incentives align with the business's success.
Evaluating a Governance history could include:
- Business ethics and fraud
- Ownership and the board
- Compensation and accounting
- Corruption and human rights
- Anti-competitive practices
