stands for Environmental, Social and Governance.
This typically referes to hygiene factors that every fund or business should have in place, such as adherence to labour laws in the country of operation, adequate health and safety standards as well as hygiene, waste management, environmental impacts such as climate change
Impact usually refers more to the opportunities that the fund sees to address societal issues with its investments, i.e. how does the fund improve people and planet and by how much?
Some funds align their impact targets to the UN Sustainable Development Goals. They have targets to report against.
What we would typically ask here is, how many jobs do your companies create, how do you protect the environment and what type of underlying businesses do you invest in (telecoms, education, healthcare, real estate etc) each one could have different impact angles and goals.
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