Brown is part of an international movement of economic and business leaders monitoring societal impact of investments.
The international business community has increasingly recognized Environmental, Social and Governance (ESG) principles as a framework for assessing how a company or business performs in areas of societal impact. When considering investment in a company or financial institution, investors can incorporate ESG criteria into building and managing their portfolios.
While a single accepted standard and reporting framework for ESG does not yet exist across the national and international financial and investment communities, Brown’s Investment Office has aligned its practices with a set of broadly accepted considerations to determine how Brown’s endowment should incorporate ESG standards into the portfolio.
The table below represents just a sampling of common considerations falling within the categories of environmental, social and governance.
| Environmental | Social | Governance |
|---|---|---|
| Considers how a company performs as a steward of nature. | Examines how a company manages relationships with employees, suppliers, customers and communities where it operates. | Measures a company’s leadership, executive pay, audits, internal controls and shareholder rights. |
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