Sustainable and ESG investments
ESG investments are investments in companies selected based on environmental, social, and good governance criteria. However, Europe is raising the bar for sustainable investments: by applying strict rules and objectives to selecting companies that carry out economic activities with a positive impact on society and the world. Sustainable investment thus goes a step further than ESG investment.
Criteria based on three pillars:
- Environmental or Environment (E)
Sustainable products and activities
Sustainable investments have an explicit objective, which can be environmental and social. Examples are the use of renewable energy, the reduction of carbon emissions, the promotion of the circular economy, the fight against inequality, the promotion of labor relations, or the investment in human capital.