The full form of ESG is Environmental, Social, and Governance (ESG).
ESG is typically a score that is compiled from data collected surrounding specific metrics related to intangible assets within the enterprise. It is considered a form of corporate social credit score.
ESG is an evaluation of a firm’s collective conscientiousness for social and environmental factors.
MSCI, a global ESG Rating agency uses the term from an investment perspective and defines ESG Investing as the consideration of environmental, social, and governance factors alongside financial factors in the investment decision-making process.
The term ESG was first coined in 2005 in a landmark study entitled “Who Cares Wins” conference.
It is a conference that first brought together institutional investors, asset managers, buy-side and sell-side research analysts, global consultants government bodies, and regulators to examine the role of ESG value drivers in asset management and financial research.
In less than 20 years, the ESG movement has grown from a corporate social responsibility initiative launched by the United Nations into a global phenomenon representing more than US$30 trillion in assets under management.
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