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Environmental, social, and corporate governance (ESG) is an approach to evaluating the extent to which a corporation works on behalf of social goals that go beyond the role of a corporation to maximize profits on behalf of the corporation's shareholders. Typically, the social goals advocated within an ESG perspective include working to achieve a certain set of environmental goals, as well as a set of goals having to do with supporting certain social movements, and a third set of goals having to do with whether the corporation is governed in a way that is consistent with the goals of the diversity, equity, and inclusion movement.A variety of governmental organizations and financial institutions have devised ways to measure the extent to which a specific corporation is aligned with ESG goals. According to a 2021 study done by the NYU Stern Center for Sustainable Business, which looked at over 1,000 studies, "studies use different scores for different companies by different data providers."Research shows that such intangible assets comprise an increasing percentage of future enterprise value. While there are many ways to think of intangible asset metrics, these three central factors together, ESG, comprise a label that has been adopted throughout the United States financial industry. They are used for a myriad of specific purposes with the ultimate objective of measuring elements related to sustainability and societal impact of a company or business. MSCI, a global ESG rating agency uses the term from investment perspective and defines ESG Investing as the consideration of environmental, social, and governance factors alongside financial factors in the investment decision-making process. Likewise, S&P highlights that through ESG investing, market participants consider in their decision-making the ways in which environmental, social, and governance risks and opportunities can have material impacts on companies' performance. Investors who use ESG in their decision-making are able to invest sustainably while maintaining the same level of financial returns as they would with a standard investment approach.The term ESG was first coined in 2005 in a landmark study entitled “Who Cares Wins" conference in 2005, a conference that first brought together institutional investors, asset managers, buy-side and sell-side research analysts, global consultants and government bodies and regulators to examine the role of environmental, social, and governance value drivers in asset management and financial research.In less than 20 years, the ESG movement has grown from a corporate social responsibility initiative launched by the United Nations into a global phenomenon representing more than US$30 trillion in assets under management. In the year 2019 alone, capital totaling US$17.67 billion flowed into ESG-linked products, an almost 525 percent increase from 2015, according to Morningstar. Critics claim ESG linked-products have not had and are unlikely to have the intended impact of raising the cost of capital for polluting firms, and have accused the movement of greenwashing.

Environmental, social, and corporate governance

Dambisa Felicia Moyo (born (1969-02-02)2 February 1969) is a Zambian-born economist and author, known for her analysis of macroeconomics and global affairs. She serves on the boards of Chevron Corporation, Condé Nast and the 3M Company. Moyo worked for two years at the World Bank and eight years at Goldman Sachs before becoming an author and international public speaker. She has written four New York Times bestselling books: Dead Aid: Why Aid Is Not Working and How There Is a Better Way for Africa (2009), How the West Was Lost: Fifty Years of Economic Folly – And the Stark Choices that Lie Ahead (2011), Winner Take All: China's Race for Resources and What It Means for the World (2012), and the most recent Edge of Chaos: Why Democracy Is Failing to Deliver Economic Growth – and How to Fix It (2018). In May 2021, she released her first business book How Boards Work: And How They Can Work Better in a Chaotic World. She holds a bachelor's degree in chemistry and an MBA from American University, an MPA from the Harvard Kennedy School, and a DPhil in economics from the University of Oxford.

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