ESG stands for Environment, Society, and Corporate Governance.

Different from traditional financial indicators, ESG indicators evaluate the sustainability of corporate operations and the impact on social values ??from the perspectives of environment, society, and corporate governance.

ESG indicators are applied in both domestic and overseas investment markets.

ESG investing originated from Socially Responsible Investment (SRI) and is the three most important considerations in SRI.

ESG investing originated in Europe and the United States.

The first ESG fund in the United States was established in 1971, and the first ESG index was established in 1990.

In 2006, the United Nations established the Principles for Responsible Investment (UNPRI). In the early days of its establishment, more than 80% of the signatories were from Europe and the United States. ESG investment had been widely recognized in Europe and the United States at that time.

Before the ESG concept became popular, the more well-known concept was Socially Responsible Investment (hereinafter referred to as "SRI"), and the SRI investment concept is usually considered to have originated from early religious activities.

In the United States in the 18th century, Methodists refused to invest in businesses related to alcohol, tobacco, gambling, or weapons. This exclusionary investment code based on religious teachings became the original prototype of SRI.

At the end of the 19th century, the Quakers established an asset management institution called Quakers Friends Fiduciary, which explicitly excluded investments in arms, tobacco or alcohol-related companies. The institution still manages funds worth hundreds of millions of dollars.

In the 1960s and 1970s, with the development of society and environmental changes, as well as the awakening of environmental protection, human rights equality, anti-war and equality awareness of minority groups, some investors hoped to reflect the value orientation of social responsibility that they believed to be correct in

In investment activities.

As a result, the foundation and starting point of SRI gradually changed from religious teachings to a reflection of the current social ideology, thus becoming a "socially responsible" investment in the true sense.