Environmental, social, and governance (ESG) criteria are a set of standards that Farms Close By operations that our stakeholders, including our investors, can use to judge to determine our social and financial value. Environmental criteria consider how a company performs as a steward of nature. Social criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. Governance deals with a company’s leadership, executive pay, audits, internal controls, and shareholder rights.
This is why we are focusing on ESG:
• Millennials and future generations care
• Purpose-driven corporate culture—shift to stakeholder capitalism
• Sustainable companies are less risky— able to avoid risk events
• ESG integration has become a priority for active investors to pick “winners”
• Long-term investors care now more than ever to find strong ESG companies
• Focusing on ESG can open new pools of capital
The following are examples of how we meet each of the criteria.