Sustainable Investing
Governance Factor
Definition
What is Governance Factor?
An issue involving board structure, ownership, controls, pay, ethics, and shareholderA person or entity that owns one or more shares in a company. rights.
Example in practice
How This Looks in Practice
Board independence and related-party transactions are governance factors.
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Related Terms
Sustainable Investing
ESG Investing
Incorporating environmental, social, and governance factors into investment analysis or ownership.
Sustainable InvestingEnvironmental Factor
An issue involving a company's effect on or exposure to the natural environment.
Sustainable InvestingSocial Factor
An issue involving employees, customers, communities, human rights, or social impact.
Digital AssetsCryptocurrency
A digitally represented asset that uses cryptographic and distributed-ledger systems for issuance or transfer.