ESG for investors:
“ESG” stands for environmental, social, and governance factors. ESG investing supports companies committed to one or more ESG factors. Also called sustainable investing, socially responsible investing, and impact investing.
As of December 2022, there are 5,319 signatories to the United Nations’ Principles for Responsible Investment (PRI) representing US $121 trillion (five times the annual US GDP).
A review completed by NASDAQ found that over a five-year period, companies that are ESG LEADERS exhibited both higher returns and less risk.
An analysis of more than 2,000 academic studies concluded that 70% reported a POSITIVE CORRELATION between ESG and financial returns.
Anti-ESG or “boycott bills” have been proposed in 16 US states and five have enacted investment restrictions.
96% of the S&P 500 are producing sustainability and climate change related reports.
The forest and wood products sector is active in ESG, companies are being recognized for their leadership, and sector-wide strategies should be considered as ESG moves into more consistent regulatory framework.