By Andrew Sharp
Whether it’s the topic of a heated political debate or a soothing reassurance in a corporate CEO’s speech, you might have seen the abbreviation “ESG” a lot more in the past few years.
In that time, Google searches for this abbreviation — standing for Environmental, Social and Governance — have shot through the roof as more people use it as shorthand in debates over how companies should invest and do business.
Experts from the Alfred Lerner College of Business and Economics at the University of Delaware shared their thoughts on what to know about this trending term driving conversation among political activists and business leaders alike.
“ESG investments consider a company’s climate change initiatives, diversity and corporate transparency as financial factors,” the Wall Street Journal reported earlier this year. “Some of the largest asset managers, including BlackRock Inc., have said that taking such things under consideration is good business.”
Not everyone feels that way.
“We live in a very polarized society right now,” said Hamed Mahmudi, an assistant professor of finance at Lerner who has followed the ESG trend.
While some fear that ESG is a result of corporations pushing a political agenda, Lerner experts point to a more complex scenario.
Click here for the story from UDaily
