Environmental, Social, and Corporate Governance (ESG) Definition

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.