Watching ESG in California, 2019
Environmental, Social, and Governance (ESG) related factors have become more relevant to investors in recent years. When considering ESG factors, investors are attempting to carve out and even shape missions that drive a positive environmental or social impact. Investors are expressing an increased interest in participating in financings that could be described as socially responsible investing. The new focus also acknowledges environmental changes that are increasingly evident in the United States, including escalations in extreme weather. For example, the annual average temperature in the United States has increased by 1.8 degrees Fahrenheit from 1901 to 2016 and is forecast to increase another 2.5 degrees, according to the U.S. Global Change Research Program. We are going to focus on the “Environmental” and a little of the “Governance” parts of ESG as it relates to recent events in California.