Environmental, Social, and Corporate Governance (ESG) Definition
Learn the definition of environmental, social, and corporate governance (ESG) and other ETF terminology from the etf.com glossary.
Learn more about Environmental, Social, and Corporate Governance (ESG)
Environmental, Social and Corporate Governance (ESG) in ETFs signifies a commitment to sustainable investing. These ETFs meticulously evaluate companies based on their environmental impact, social responsibility and corporate governance practices. Investors are drawn to ESG ETFs as a means to align their portfolios with ethical and sustainable business practices. By integrating ESG criteria into investment decisions, these funds aim to support environmentally conscious and socially responsible corporations, reflecting a broader global shift toward more sustainable and socially aware investment strategies.