ESG factors can impact the long- term risk and return profile of investment portfolios. Investors who intend to buy se-curities that have been monitored for ESG criteria are expected to join through environmentally responsible endowments.
In view of governance, investors who operate according to ESG framework are interested in a company’s punctual and transparent accounting and auditing approaches. Their goal is to control that all groups of shareholders have a capability to vote on strategic issues. They want to be armed with up-to-date information about methods used to avoid conflicts of interest when choosing the supervisory board. Moreover, they prefer to escape investing in companies that demonstrate disorderly conduct or use political or economic levers of power in order to get favorable treatment.