Considerations for Environmental, Social, & Governance Risk
ESG ratings provide insight into a company’s exposure to, and management of, ESG issues in multiple dimensions. Overall ESG ratings are comprised of a consideration of how companies view risk across Governance, Social and Environmental categories. Understanding potential exposure to ESG aspects allows PetroFunders to be a good steward of managing potential investment risk. In a market where investors are demanding insight into companies’ sustainability credentials, ESG ratings can provide a means of measurement.