There are as many approaches to investing as there are investors. One strategy that has received much attention of late is ESG.
ESG stands for environmental, social and governance. It aims to mitigate the risks a company faces from poor practices in any of these areas. For example, a company that doesn't treat its employees well has a greater risk of strikes or lawsuits. One that doesn't treat the environment well could face fines or costly regulations in the future – not to mention backlash from investors and customers.
