FlashKeepers

Finance · General

ESG and Sustainable Investing Basics

Environmental, social, and governance investing criteria and sustainable investment strategy concepts.

35 cards · basic cards · AI-written, checked twice. Edit anything.

Study this set free Look inside first Get FlashKeepers for iPhone
What does ESG stand for?
Environmental, Social, Governance
What is ESG investing?
An investment approach that evaluates companies based on environmental, social, and governance factors alongside financial metrics
What does the E represent in ESG?
Environmental factors such as climate change, resource depletion, and pollution
What does the S represent in ESG?
Social factors such as labor practices, human rights, community relations, and diversity
What does the G represent in ESG?
Governance factors such as board composition, executive compensation, and shareholder rights
What is sustainable investing?
An investment approach that seeks to generate financial returns while creating positive environmental or social impact
What is negative screening in ESG investing?
Excluding companies or industries that fail to meet ESG standards from an investment portfolio
What is positive screening in ESG investing?
Actively selecting and investing in companies with strong ESG performance and practices
What is a carbon footprint in ESG?
The total greenhouse gas emissions produced by a company's operations and supply chain
What is greenwashing?
Making false or exaggerated claims about environmental benefits to appear more sustainable than warranted
What is impact investing?
An investment strategy that intentionally seeks measurable positive social or environmental outcomes alongside financial returns
What does ESG materiality mean?
Identifying which ESG issues are most relevant and impactful to a company's business model and financial performance
What are shareholder rights in governance?
Legal entitlements of shareholders to vote on company decisions, access information, and hold management accountable
What is board diversity in ESG governance?
The composition of a company's board of directors in terms of gender, ethnicity, age, and professional background
What is executive compensation in ESG?
The salary, bonuses, benefits, and incentives paid to company executives, evaluated for fairness and alignment with performance

20 more cards in the app