ESG Information

What Are ESGs?


ESGs are very complex (see here and here). In the simplest of terms, they are like a FICO score, but instead of measuring one’s credit worthiness, it produces a score based on adherence to left-leaning causes. Currently, ESGs are primarily applied to corporations. In fact, you can look up the ESG score of most large companies. A low ESG score has the potential of crushing consequences for a company. It is anticipated that in the future, both smaller vendors and customers of these companies will have to submit their own ESG criteria to be able to obtain services from these larger corporations. While diversity, equity, and inclusion (DEI) and many other metrics are parts an ESG score, the main driver is a company’s commitment to climate change.


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