The international business community has increasingly recognized Environmental, Social and Governance (ESG) principles as a framework for assessing how a company or business performs in areas of societal impact. When considering investment in a company or financial institution, investors can incorporate ESG criteria into building and managing their portfolios.
While a single accepted standard and reporting framework for ESG does not yet exist across the national and international financial and investment communities, Brown’s Investment Office has aligned its practices with a set of broadly accepted considerations to determine how Brown’s endowment should incorporate ESG standards into the portfolio.
The table below represents just a sampling of common considerations falling within the categories of environmental, social and governance.
Environmental | Social | Governance |
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Considers how a company performs as a steward of nature. | Examines how a company manages relationships with employees, suppliers, customers and communities where it operates. | Measures a company’s leadership, executive pay, audits, internal controls and shareholder rights. |
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