ESG stands for Environmental, Social, and Governance factors, which are key considerations in sustainable investing. Sustainable investors use this framework to assess companies’ management of environmental, social and governance issues, and identify potential risks and opportunities.
Breaking down ESG
Environmental
Focuses on how a company performs as a steward of nature, addressing climate change, resource depletion, waste management, and pollution.
Social
Examines how a company manages relationships with employees, suppliers, customers, and communities, covering labor practices, diversity, human rights, and consumer protection.
Governance
Looks at a company’s leadership, executive pay, audits, shareholder rights and ethical business practices.
Why ESG Matters in Finance
By integrating ESG factors into investment decisions, sustainable investing seeks to better manage risks while promoting long-term value creation for a broader range of stakeholders.
Companies with strong ESG profiles tend to be better positioned to navigate future challenges.
ESG investing plays a crucial role in driving positive change and supporting sustainable development goals.
Candriam’s Commitment to ESG
At Candriam, ESG is at the core of our investment philosophy.
With over 25 years of experience in sustainable investing, we integrate ESG criteria across our portfolios as we believe this allows to deliver value for investors while promoting a more sustainable future.
Continue your ESG learning journey
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Join the Candriam Academy to deepen your knowledge of sustainable investing.
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Read our latest ESG insights for expert perspectives and trends.