“ESG” refers to the concept of stressing the three elements of “environment,” “social,” and “governance” for companies to achieve long-term growth. It is an acronym formed by the first letters of those elements.
More and more companies are switching to ESG-friendly management as they have learned that their traditional profits-first approach may have led to the emergence of various environmental and social problems.
ESG investment and financing refers to investment and financing by investors who pay attention to and select ESG-conscious companies. In recent years, non-financial information related to ESG has come to stand alongside financial information as an important factor in making investment and financing decisions.