Commentary
When you hear the acronym ESG, do your eyes glaze over? If so, you are not alone. For some, ESG represents progress. For others, however, it’s nothing but a scam. Nevertheless, the ESG movement is picking up steam, with an increasing number of corporations jumping on board.
According to Barron’s, the sister publication of The Wall Street Journal, even retail investors, the very people who are supposed to understand the intricacies of ESG, “have a hard time explaining what it means.” According to the article, 25 percent believe ESG stands for “earnings, stock, growth.”
The acronym, which stands for environmental, social, and corporate governance, evaluates how a corporation balances social goals that benefit the broader community alongside more traditional goals, like maximizing profits.
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