Your questions, answered
ESG stands for environmental, social and governance. These are the criteria that can play a role in deciding what companies or sectors an ESG option invests in. You may hear the term used interchangeably with "socially responsible investing (SRI)" and "sustainable investing." ESG issues can impact a company’s financial performance, so an investment option that considers ESG issues could fit your financial goals and may also suit your personal preferences. For more, read Vanguard's approach to ESG.