ESG is arguably one of the great "mega trends" of increasing importance to institutional investors in recent years, and likely over the years to come. The acronym "ESG" stands for "Environmental," "Social," and "Governance" metrics used in evaluating an investment alongside financial metrics like profitability and balance sheet quality. Proponents of ESG claim that companies with high ESG scores have more sustainable business models and relationships with stakeholders which may ultimately support returns and reduce risk.
Some cynics say the reality of ESG is that it provides cover for