A growing number of investors are focusing on companies with ESG initiatives — environmental, social and corporate governance. These non-financial factors are standards that measure the ethical impact and sustainability of an investment in a company. This is also known as impact investing or sustainable investing.
As climate change concerns worsen and social inequities around the world persist, impact investing is one way that investors hope to help make the world a little bit better.
It’s certainly an inviting prospect. It feels good to invest in a company that shares your values. And it’s not just individual investors who are doing this. Vanguard just filed a registration statement to introduce its “Positive Impact Stock Fund.” And venture capitalists are pledging to increase diversity in their workforces and their investments.
But is ESG investing really taking off? In this episode of Startup Insider, Andy Gordon and Vin Narayanan investigate the ethical investing trend. Topics include Andy’s changing investing philosophy, example companies from the First Stage Investor portfolio, ESG skepticism and more.
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