What Is ESG? Environmental, Social & Governance (ESG) Explained

What is ESG, and why does it matter in financial analysis? Environmental, social, and governance (ESG) factors can help analysts assess a company’s risks, opportunities, management effectiveness, and ability to create long-term value. In this course module, you’ll learn the fundamentals of ESG and how environmental, social, and governance issues can affect companies and their stakeholders. You’ll also explore how ESG developed from earlier concepts such as environmental health and safety, corporate sustainability, and corporate social responsibility. The lesson also examines the key forces driving ESG, including materiality, investor and client demand, and regulation. Real-world examples from BP, Volkswagen, and Facebook demonstrate how ESG-related issues can have significant financial consequences. By the end of this lesson, you’ll have a stronger foundation for evaluating ESG information as part of financial analysis, due diligence, and investment decision-making. Continue learning with CFI: https://cfi.to/usZiN Subscribe to CFI for more practical lessons on financial analysis, investment management, ESG, and corporate finance. #ESG #FinancialAnalysis #CorporateFinance