Understanding the ESG factors : environment, society, governance

ESG factors are powerful drivers of change in the world. They often influence the context in which companies operate, creating both risks and opportunities.

ENVIRONMENT

  • Climatic change
  • Greenhouse gas emission
  • Exhaustion of resources, including water
  • Waste and pollution
  • Deforestation
  • Energetic efficiency
SOCIETY
  • Working conditions, including slavery and child labor
  • Manpower management
  • Safety and quality of products
  • Health and demographic risk
  • Conflict zones
  • Work relationships
GOVERNANCE
  • Executive remuneration
  • Fraud and corruption
  • Lobbying and political donations
  • Structure and diversification of the board of directors
  • Tax Strategies
  • Business ethics
  • Instability of financial systems

The benefits of sustainable investing

Matching investments with values

Through sustainable investing strategies, investors can align their investment objectives, principles, values ​​and benefit from a return, while helping to make a difference socially and environmentally.

 

Optimizing risk management

The ESG assessment provides a more holistic view of the risks to a business, which can help mitigate exposure to certain risks that are potentially not perceptible in the financial statements.

 

Improved long-term performance

The integration of ESG criteria can help identify opportunities that are difficult to detect through conventional financial analysis and, in the process, improve long-term outcomes.

 

Source : FIDELITY INVESTMENTS CANADA S.R.I.