Everyday Power- What are the guidances of ESG benchmarks consistency for investors?

ETFs that invest in environmental, social, and governance, or ESG, aspects have grown in popularity in recent years, but investors are still perplexed by the intricacies of these issues. Standardizing the criteria for each fund could be one answer.

S&P Global CEO and President Doug Peterson told CNBC's ′′ETF Edge′′ on Monday that regulating ESG disclosures would offer investors with a consistent set of information instead of leaving investors to sort through a variety of standards.

"One of the risks we had before was a complete alphabet soup of different organizations trying to standardize ESG disclosures," Peterson said.

According to Peterson, the International Sustainability Standards Board is now bringing all these organizations together to develop a single approach to ESG disclosures.

ESG isn't a new concept in business. The World Economic Forum published a list of 21 ESG guidelines for corporations to use since 2019.

[Everyday Power]

1. The three factors of environmental, social, and governance evaluating a company's sustainability performance

2. Global sustainability has become more prominent and important than ever, enabling ESG investing to become more and more popular.

3. ESG investing pays attention to financial returns and efforts for a better society and the world.

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