Environmental, geographical… what does it actually stand for? Whenever you type it up it’s just articles like ‘investor-this investor-that’, but what does this got to do with anything? It’s never explained what exactly it is.
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ESG stands for environmental-social-governance. Essentially, ratings agencies assess a company by the social values it promotes.
Environmental related to emissions, etc.
Social relates to racial issues, LGBT stuff, etc.
Governance relates to the way a company is run. E.g. transparency, etc.
Obviously these values largely breakdown almong leftwing/rightwing lines. For one reason or another many of the large investors, such as Black Rock, Vanguard, etc have pushed very strongly to only invest in companies that espouse ESG values. Having a bad ESG score had made it much harder to finance projects and do other high-cost things required to run a large corporation.
The anti-ESG push is essentially a movement to remove these political topics from business.
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