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.

ETF
Dec 04, 2023
Edited by: etf.com Staff
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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