What is an ESG Fund?
October 13, 2021 / Signature Wealth
Some of you may be asking “What is ESG?” ESG stands for Environmental, Social and Governance. ESG criteria is a set of standards for how a company operates. Here are some examples of those criteria standards:
ENVIRONMENTAL
Environmental criteria may be used to evaluate any environmental risks a company may face and how they manage those risks. It may include how the company’s energy use, air and water pollution, natural resource conservation or treatment of animals.
SOCIAL
Social criteria may include the consideration of people and relationships. Does that company work with suppliers that have the same values as they claim to hold. Does the company’s working condition show high regard for their employee’s health and safety? This also checks on the company’s data protection and privacy.
GOVERNANCE
Governance criteria looks for standards for running a company. It may look for transparent accounting methods and if they avoid conflicts of interest within their board members. It may also include political contributions or executive compensation. I
t is important to know that no simple company may pass every test in the above categories. If you are interested in learning more about ESG funds or companies, please reach out to your Signature Wealth Financial Advisor.
Fun Facts and Life Hacks!
Winter is just around the corner. Below is a checklist to help you get your car ready for the upcoming cold winter months.
- Change your oil
- Check your battery
- Check your defroster and heater
- Check your tires
- Keep your gas tank filled (at least 1/4 to 1/2 way full at all times)
- If you don’t have an emergency kit already in your car, now is the time to put one together.
To see a full checklist from AAA, please click here. 