ESG Is Not ‘Ethical Investing.’ And That’s OK.

Environmental, social and governance investing isn’t the same as ethical or impact investing. Here’s where those concepts differ, and why they all can work together.

The sun shines through a four-leaf clover.
(Image credit: Getty Images)

As enthusiasm about ESG investing has been on the rise, so too has controversy. ESG is an acronym that refers to the environmental, social and governance considerations relating to investing. It’s an approach that, by some estimates, may become integrated into half of all U.S. managed accounts by 2025.

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Azish Filabi, JD
Executive Director, American College Center for Ethics in Financial Services

Azish Filabi, JD, is Executive Director of the American College Center for Ethics in Financial Services and an Associate Professor of Ethics at the American College of Financial Services. She joined The College in 2020. Before that, Filabi worked at BlackRock as Vice President for Investment Stewardship, where she was involved with topics such as executive compensation, board quality, diversity and composition, and disclosure of environmental and social risks.