Environmental, social and governance (ESG) investing is nothing new. Socially responsible investing has existed for centuries. But “woke” capitalism, “woke” ESG and “woke” investing are some of the terms used to describe ESG today.
The modern ESG concept dates to the mid-2000s. A landmark report produced in 2005 by the United Nations in cooperation with the financial industry changed everything. The 40+ page document stated that factoring ESG into investments would benefit companies and make good business sense.
Almost 20 years later, ESG is in the crosshairs.
