If we imagine how companies were at the time of the industrial revolution, we can reach the idea that they had no interest in the care of the environment, not interested in the health of their workers and disorganized, comparing with the present. As the years passed, people have changed, their way of life change and their vision for the future as well.
Currently, companies seek to connect to people, that people are the company and that the company is the person. Having this idea that companies are people, the concern arises about the future, to take care of it and to take care of the now.
Thus arise the ESG standards, a way of seeing and analyzing finances, thinking about the now and tomorrow. These ESG criteria allow investors to make decisions taking into account the company's care of three key standards in society: environmental care, social care and company governance.
• Environmental care
Many of the companies that dedicate themselves to areas completely away from environmental care, begin to take action in the care of this. Companies seek to provide their small sand granite in the care of four of the most important problems of the environment, as are: climate change, global warming, pollution and rising sea level. An example of a company is that of LEGO, the famous toy brand, already said that until 2030, wants all of its parts and packaging to be environmentally friendly materials.
• Social care
As companies are people, they are concerned that they are in the best possible way, providing all possible help for the maximum development of society. Within the company, the largest and most general of social care is to avoid accidents that harm the health of workers.
• Company governance
Governance standards seek companies to use accurate and transparent accounting methods, seek integrity and diversity by selecting their leadership and being responsible for shareholders.
ESG for investors and society
At present, investors are increasingly interested in in in integrating their portfolios to companies and fund suppliers related to ESG standards, making it an exciting area of growth that also has positive effects on society and the environment. If you consider investing with ESG standards, it depends on whether you want to combine your feelings with your investments. From there, you can consult one or more of several ESG qualification systems that have appeared in recent years to create the appropriate portfolio, or consider an ETF or mutual fund adapted to ESG.
Comments