Definitions: ESG vs sustainability
ESG stands for environment, social and governance. ESG factors form the foundation for the various sustainable investment approaches used by PostFinance. During the assessment of ESG factors, attempts are made to evaluate the extent to which companies or states have environmental and social risks under control. In other words, the focus is on the company/state and how resilient and well prepared it is. The term “sustainability” refers to the impact of companies/states on the environment or society, i.e. whether the products and services have a positive or negative impact on the environment or society. The majority of external ratings focus on the ESG angle, but very few look at sustainability.