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Environmental, social, and governance
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<p>Environmental, social, and governance (ESG) is shorthand for an <a href="/facts/Investment/VrMookcv">investing</a> principle that prioritizes <a href="/facts/Environmental_issues/6w5L44ek">environmental issues</a>, <a href="/facts/Social_issues/JLBMz1sm">social issues</a>, and <a href="/facts/Corporate_governance/ISvl8hIn">corporate governance</a>. Investing with ESG considerations is sometimes referred to as <a href="/facts/Socially_responsible_investing/pW8Ftn39"><i>responsible investing</i></a> or, in more proactive cases, <i><a href="/facts/Impact_investing/6dRBsqnQ">impact investing</a></i>. </p><p>The term ESG first came to prominence in a 2004 report titled "Who Cares Wins", which was a joint initiative of financial institutions at the invitation of the <a href="/facts/United_Nations/fgXLnmgT">United Nations</a> (UN). By 2023, the ESG movement had grown from a UN <a href="/facts/Corporate_social_responsibility/lIoo9m1s">corporate social responsibility</a> initiative into a global phenomenon representing more than US$30 trillion in assets under management. </p><p>Criticisms of ESG vary depending on viewpoint and area of focus. These areas include <a href="/facts/Data_quality/Hr9APbfG">data quality</a> and a lack of standardization; evolving <a href="/facts/Regulation/eFR0l2x9">regulation</a> and <a href="/facts/Politics/1gDNy3RP">politics</a>; <a href="/facts/Greenwashing/D66rSGHU">greenwashing</a>; and variety in the definition and assessment of <a href="/facts/Social_good/DxnmnDzQ">social good</a>. Some critics argue that ESG serves as a <a href="/facts/De_facto/3Du6WQKh">de facto</a> extension of <a href="/facts/Government_regulation/eFR0l2x9">governmental regulation</a>, with large investment firms like <a href="/facts/BlackRock/bQWj1qcj">BlackRock</a> imposing ESG standards that governments cannot or do not directly legislate. This has led to accusations that ESG creates a mechanism for influencing markets and corporate behavior without <a href="/facts/Democracy/3tLdVS1C">democratic oversight</a>, raising concerns about accountability and overreach. </p>