What does sustainable investing mean?
Sustainable investments explicitly take into account ESG criteria. These criteria are concerned with the dimensions of environment, society and corporate governance.
E: Environmental
Companies whose activities promote climate change, exploit natural resources, attack the ozone layer or have a negative impact on biodiversity are avoided. Instead, investors prefer companies whose activities contribute towards the development of environmentally friendly technologies, products and services.
S: Social
Companies that are involved in controversies over human rights, breach employment rights or whose activities threaten people’s health or security are avoided. There is a preference for companies whose activities contribute towards improving people’s quality of life.
G: Governance
Companies that do not act in the interests of their shareholders or breach the principles of ethical business conduct are avoided. Investors instead prefer companies with exemplary corporate governance practices.
Principles for Responsible Investment
VZ has committed to the United Nation’s Principles for Responsible Investment (UN PRI): by following the six rules for responsible investment, we aim to help build a more sustainable global financial system.
