Read about how environmental, social, and governance (ESG) is shedding its role at the fringe of financial analysis and carrying more weight among mainstream investors. It’s not just about wowing consumers anymore.

Bloomberg’s Push for Corporate Sustainability
By Paul Tullis, Fast Company, April 01, 2011

…To its proponents, ESG is less concerned with social responsibility than with profits. If a company treats its employees well, for instance, it should have less turnover and lower HR costs; if a manufacturer gets serious about safety, it can avoid expensive lawsuits. There’s increasing evidence — and, correspondingly, a growing belief among portfolio managers — that companies taking such factors into account are forward-thinking and well managed, and therefore places investors should consider.

… what’s measured gets managed. If analysts are paying attention to ExxonMobil’s carbon-dioxide use, then the company may try to reduce its emissions — and maybe create a product that enables other companies to reduce their emissions. “I saw the potential for us to have an impact exponential to what we’d been doing on the operating side with making Bloomberg greener,” Ravenel says. “This would dwarf anything we could do to reduce our footprint.”