The ESG score
ESG is the acronym of Environmental, Social, and Governance, and encompasses criteria used to evaluate companies not only by their economic value but also their effort in enhancing their impact on the world.
The Environmental factor
We only have this home, and we should treat it as best as we can.
Many companies are putting a lot of effort into having the least impact possible and supporting them would help support our home.
Does the company employ clean and renewable energy in their administration and production lines?
The Social factor
We rarely stop and think about who made our phone, our clothes or who harvested the fruits on our tables, but without people working hard there would be no products for us to consume.
So let's support companies that respect and support them.
Does the company pay its workers a minimum wage? Are workers treated as humans?
The Governance factor
It may seem crazy, but companies don't always respect good practices in their own administration.
Fraud and tax evasion might be the first thing we all think about, but there is so much more to it.
Does the company have fraudulent behaviors in its records?