In her course about ESG (Environmental, Social and Corporate Governance), Professor Zhan Xintong from the Department of Finance and Accounting, Fudan University School of Management covers topics like importance of ESG principles to the enterprises and to the society, benefits for companies adopting ESG strategies, how to invest in ESG companies.
Since 2000, issues such as environmental protection, global warming, the way listed companies treat their employees have been gaining more and more spotlight. As three of the most important non-financial indicators of enterprises, ESG factors have been taken into consideration by investors and financial institutions, as well as by the government and regulatory agencies.
The simplest approach to ESG investing is not to stay away from companies with poor ESG performance, and choose companies with excellent ESG performance from each industry to invest in. Yet Professor Zhan pointed out that is no obvious answer to the question that whether ESG investing makes great money, for it depends on how you invest, the investment length, and what other investments you are comparing it with.
ESG strategies can help enterprises form their unique competitiveness and stand out in the fierce competition. By paying more attention on the company's performance in sustainable development, ESG investing is bringing more and more high-quality resources and positive impact to environmental protection and social advancement.
