ESG and sustainability, these two words really hide information that is very useful to investors. Indeed, the majority of investors no longer use financial factors alone. The evolution is obvious since the use of ESG and sustainability approach has become possible. What do we really need to know about these two issues? Read this guide for more information.
ESG Criteria
Through ESG criteria, investors can learn about the likely risks that could destabilize their business. In the lot of these risks, we count lax practices that affect negatively the price of bonds and stocks. The consequences are especially noticeable in the environmental, safety and health fields, resulting in damage to the reputation of companies. The payment of penalties and other fines is also a consequence. Hence, the interest in ESG criteria by the masses, as their advantages are plentiful. According to Diginex, they can indeed bring about a positive change in a company. Currently, the number of investors opting for an investment in a company that is socially and environmentally responsible is growing steadily. Companies will be more encouraged from now on to opt only for the fairly sustainable solutions in all types of business.
Sustainability: what is it
? In an ecological way, sustainability is perceived as the mode of development that meets the totality of the needs of the present. Also, this highly efficient mode does not compromise the capacities of future generations. It should also be noted that the scope of sustainable development is broader than that of environmental protection. Today, the expenses are very important. A prosperous economy is required while a society whose rule of life is solidarity. In short, use sustainable development to establish a sustainable economic system that benefits the next generation.