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.

Reviewed by: etf.com Staff
Edited by: etf.com Staff

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.

Related Terms

Exchange-Traded Fund (ETF), Investment Adviser

ETF Glossary is etf.com’s collection of key terms and definitions related to exchange-traded funds. ETFs are investment funds that are traded on stock exchanges, and they can encompass a wide range of asset classes, including stocks, bonds, commodities and more. Given the diverse range of ETFs and the complexity of financial markets, having a clear understanding of ETF-related terminology is instrumental for investors looking to make informed decisions, manage risks effectively and navigate the evolving landscape of ETF investments.