Avoiding Harm and Mitigating Risk

An understanding of the ESG risks different sectors and companies are exposed to can be incorporated into your investment decisions. You can look at various ESG metrics to achieve this, including those related to:

  • Environmental concerns: Climate change, natural resources conservation, pollution and waste management, and water scarcity.
  • Social issues: Corporate philanthropy, community and government relations, workplace health and safety, human rights and diversity.
  • Governance topics: accounting practices, board accountability and structure, disclosure practices, executive compensation, corporate ethics, regulatory compliance and transparency.