The Low-down

Environmental:

A company’s use of energy and natural resources, and the pollution and waste it creates

Social:

How a company manages relationships with stakeholders, including employees, suppliers and customers

Governance:

How a company’s leadership operates—think diversity, inclusion, shareholder rights and engagement in the sustainability reporting process

ESG integration:

How ESG factors are incorporated into investment analysis and decisions to determine the potential impact on company and sector performance

Impact investing:

Often confused with ESG investing, this investment strategy generates financial returns alongside a positive social or environmental impact; impact investing is more focused on the positive social/environmental outcome, whereas ESG investing usually brings better financial returns

Stewardship:

How financial service companies engage with a company to assess its ESG risks and opportunities

Greenwashing:

When a company provides misleading information about the sustainability of its products and practices