New recipes

Social and Environmental Factors in Finance: Looking at the Bottom Line

Social and Environmental Factors in Finance: Looking at the Bottom Line

Social and environmental due diligence is a critical part of the mission for many companies. Until recently, Root Capital perceived it as an additional cost that might reduce profitability or their ability to compete with other lenders. Their experience has taught them to think about it as a competitive advantage that at least partially pays for itself, and may even bolster the bottom line.


What is ESG?

ESG&mdashenvironmental, social and governance&mdashdescribes areas that characterize a sustainable, responsible or ethical investment.

The Financial Times Lexicon defines ESG as &ldquoa generic term used in capital markets and used by investors to evaluate corporate behaviour and to determine the future financial performance of companies.&rdquo It is used by investors to evaluate corporations and determine the future financial performance of companies. It adds that ESG &ldquoare a subset of non-financial performance indicators which include sustainable, ethical and corporate governance issues such as managing a company&rsquos carbon footprint and ensuring there are systems in place to ensure accountability.&rdquo They are factors in investment considerations, used in risk assessment strategies incorporated into both investment decisions and risk management processes.


What is ESG?

ESG&mdashenvironmental, social and governance&mdashdescribes areas that characterize a sustainable, responsible or ethical investment.

The Financial Times Lexicon defines ESG as &ldquoa generic term used in capital markets and used by investors to evaluate corporate behaviour and to determine the future financial performance of companies.&rdquo It is used by investors to evaluate corporations and determine the future financial performance of companies. It adds that ESG &ldquoare a subset of non-financial performance indicators which include sustainable, ethical and corporate governance issues such as managing a company&rsquos carbon footprint and ensuring there are systems in place to ensure accountability.&rdquo They are factors in investment considerations, used in risk assessment strategies incorporated into both investment decisions and risk management processes.


What is ESG?

ESG&mdashenvironmental, social and governance&mdashdescribes areas that characterize a sustainable, responsible or ethical investment.

The Financial Times Lexicon defines ESG as &ldquoa generic term used in capital markets and used by investors to evaluate corporate behaviour and to determine the future financial performance of companies.&rdquo It is used by investors to evaluate corporations and determine the future financial performance of companies. It adds that ESG &ldquoare a subset of non-financial performance indicators which include sustainable, ethical and corporate governance issues such as managing a company&rsquos carbon footprint and ensuring there are systems in place to ensure accountability.&rdquo They are factors in investment considerations, used in risk assessment strategies incorporated into both investment decisions and risk management processes.


What is ESG?

ESG&mdashenvironmental, social and governance&mdashdescribes areas that characterize a sustainable, responsible or ethical investment.

The Financial Times Lexicon defines ESG as &ldquoa generic term used in capital markets and used by investors to evaluate corporate behaviour and to determine the future financial performance of companies.&rdquo It is used by investors to evaluate corporations and determine the future financial performance of companies. It adds that ESG &ldquoare a subset of non-financial performance indicators which include sustainable, ethical and corporate governance issues such as managing a company&rsquos carbon footprint and ensuring there are systems in place to ensure accountability.&rdquo They are factors in investment considerations, used in risk assessment strategies incorporated into both investment decisions and risk management processes.


What is ESG?

ESG&mdashenvironmental, social and governance&mdashdescribes areas that characterize a sustainable, responsible or ethical investment.

The Financial Times Lexicon defines ESG as &ldquoa generic term used in capital markets and used by investors to evaluate corporate behaviour and to determine the future financial performance of companies.&rdquo It is used by investors to evaluate corporations and determine the future financial performance of companies. It adds that ESG &ldquoare a subset of non-financial performance indicators which include sustainable, ethical and corporate governance issues such as managing a company&rsquos carbon footprint and ensuring there are systems in place to ensure accountability.&rdquo They are factors in investment considerations, used in risk assessment strategies incorporated into both investment decisions and risk management processes.


What is ESG?

ESG&mdashenvironmental, social and governance&mdashdescribes areas that characterize a sustainable, responsible or ethical investment.

The Financial Times Lexicon defines ESG as &ldquoa generic term used in capital markets and used by investors to evaluate corporate behaviour and to determine the future financial performance of companies.&rdquo It is used by investors to evaluate corporations and determine the future financial performance of companies. It adds that ESG &ldquoare a subset of non-financial performance indicators which include sustainable, ethical and corporate governance issues such as managing a company&rsquos carbon footprint and ensuring there are systems in place to ensure accountability.&rdquo They are factors in investment considerations, used in risk assessment strategies incorporated into both investment decisions and risk management processes.


What is ESG?

ESG&mdashenvironmental, social and governance&mdashdescribes areas that characterize a sustainable, responsible or ethical investment.

The Financial Times Lexicon defines ESG as &ldquoa generic term used in capital markets and used by investors to evaluate corporate behaviour and to determine the future financial performance of companies.&rdquo It is used by investors to evaluate corporations and determine the future financial performance of companies. It adds that ESG &ldquoare a subset of non-financial performance indicators which include sustainable, ethical and corporate governance issues such as managing a company&rsquos carbon footprint and ensuring there are systems in place to ensure accountability.&rdquo They are factors in investment considerations, used in risk assessment strategies incorporated into both investment decisions and risk management processes.


What is ESG?

ESG&mdashenvironmental, social and governance&mdashdescribes areas that characterize a sustainable, responsible or ethical investment.

The Financial Times Lexicon defines ESG as &ldquoa generic term used in capital markets and used by investors to evaluate corporate behaviour and to determine the future financial performance of companies.&rdquo It is used by investors to evaluate corporations and determine the future financial performance of companies. It adds that ESG &ldquoare a subset of non-financial performance indicators which include sustainable, ethical and corporate governance issues such as managing a company&rsquos carbon footprint and ensuring there are systems in place to ensure accountability.&rdquo They are factors in investment considerations, used in risk assessment strategies incorporated into both investment decisions and risk management processes.


What is ESG?

ESG&mdashenvironmental, social and governance&mdashdescribes areas that characterize a sustainable, responsible or ethical investment.

The Financial Times Lexicon defines ESG as &ldquoa generic term used in capital markets and used by investors to evaluate corporate behaviour and to determine the future financial performance of companies.&rdquo It is used by investors to evaluate corporations and determine the future financial performance of companies. It adds that ESG &ldquoare a subset of non-financial performance indicators which include sustainable, ethical and corporate governance issues such as managing a company&rsquos carbon footprint and ensuring there are systems in place to ensure accountability.&rdquo They are factors in investment considerations, used in risk assessment strategies incorporated into both investment decisions and risk management processes.


What is ESG?

ESG&mdashenvironmental, social and governance&mdashdescribes areas that characterize a sustainable, responsible or ethical investment.

The Financial Times Lexicon defines ESG as &ldquoa generic term used in capital markets and used by investors to evaluate corporate behaviour and to determine the future financial performance of companies.&rdquo It is used by investors to evaluate corporations and determine the future financial performance of companies. It adds that ESG &ldquoare a subset of non-financial performance indicators which include sustainable, ethical and corporate governance issues such as managing a company&rsquos carbon footprint and ensuring there are systems in place to ensure accountability.&rdquo They are factors in investment considerations, used in risk assessment strategies incorporated into both investment decisions and risk management processes.


Watch the video: What are Environmental Factors? (October 2021).