But, that’s not entirely true. So what does ESG really mean?  

• Environmental – companies that focus on environmental factors such as renewable energy sources, reducing the carbon footprint, reducing emissions, etc.
• Social – companies that focus on social issues such as consumer and workplace safety
• Corporate Governance – companies that make a positive impact

Corporate governance often gets the least recognition. Perhaps because many don’t understand the benefits. Companies with good governance operate in ways that are fair and ethical and have a clear balance of power.  It’s directly related to both environmental and social factors.

Why would good governance be a good investment? In a recent Forbes piece, FundX’s Janet Brown tells you why. Click here for the full article.