The abbreviation “ESG” has a particular meaning for pension funds and institutional investors that are evaluating ownership in a company. The letters correspond to the environmental, social, and governance risk factors that can impact financial performance.
The “S-factors” range from workplace practices governing health and safety, to a company’s impact on a given community. And although they have received less attention than “E” and “G,” these S-factors are coming under more scrutiny by institutional investors, according to Harvard researchers.
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