At its simplest, Environmental, Social and Governance (ESG) refers to how businesses consider non-financial factors, such as environmental issues, social impacts and good governance practices, within their operations, products produced and services provided.
Through active ownership, private equity firms are uniquely positioned to support best-practice approaches to ESG at scale across various sectors.
At Sagemount, we look at ESG both from a risk perspective, but also as an opportunity to drive value creation. We align our ESG program closely with our Alpha Plan to generate sustainable financial returns for investors and our communities.
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ESG Investing & How it Works
Many investors have shown increased interest in placing their money where their values are, which is why we align our ESG program with plans that generate sustainable financial returns for both investors and communities. Here are a few of the benefits associated with ESG investing.
Frequently Asked Questions About ESG Investing
How is ESG Investing Different From Sustainable Investing?
The two are similar, but ESG investing screens companies based on criteria related to social, environmental and governance. Meanwhile, sustainability considers instead the impact of those decisions on the world.