ESG in investing stands for environmental, social and governance. It is a set of criteria investors can use to understand the values and the future of an organization.
Companies pour resources into disclosing their ESG because, as the saying goes, sunlight is the best disinfectant. Or so has been the thought for many years.
While ESG is undoubtedly good, says John Fullerton, mere transparency is not going to solve the world’s sustainability issues. For that, public companies need to act more like private companies and be responsible to their owners.