Social (the “S” in ESG)
The “Social” aspect of ESG (Environmental, Social, and Governance) evaluates various factors impacting a company’s financial performance. When considering social factors in sustainable investing, it’s vital to assess a company’s strengths and weaknesses in areas such as social trends, labour practices, and political engagement. Considering these social factors can provide insights into a company’s approach to social responsibility, stakeholder engagement, and its impact on communities and employees. These can be important considerations for sustainable investing and assessing a company’s overall ESG performance.