Environmental, social and corporate management factors of the investment process

The transition to impact investing is associated with the integration of environmental, social and managerial factors (ESG) both in investment processes and the decision-making process in financial markets. ESG factors cover a wide range of issues that are not traditionally included in financial analysis but can have financial significance and huge consequences for the whole society. They can manifest themselves both at the world, and at the macro-economic and social, as well as at the general planetary levels.

ESG factors assess the effectiveness of strategies and practices in the environmental, social and corporate management spheres in the field of health and epidemiological situation, environmental protection, water resources management and supply chains, employee relations. In addition, the factors reflect corporate culture, trust and innovative development. They expand the traditional vision of investment prospects and economic growth from cost indicators to qualitative living conditions and preservation of the planet for future generations.