The whole point of ESG investing is to identify and monitor risks that are not priced in the stock market but that could become material for the financial success of a company. This also means that the three dimensions of ESG are not independent. A company with good governance is likely to have better risk oversight and thus lower risks in day-to-day operations.
When good G reduces your risks in E and S
When good G reduces your risks in E and S
When good G reduces your risks in E and S
The whole point of ESG investing is to identify and monitor risks that are not priced in the stock market but that could become material for the financial success of a company. This also means that the three dimensions of ESG are not independent. A company with good governance is likely to have better risk oversight and thus lower risks in day-to-day operations.