Environmental, Social and Governance (ESG)

There is growing evidence that suggests that Environment, Social and Governance (ESG) factors, when integrated into investment analysis and decision making, may offer investors potential long-term performance advantages.

ESG factors offers Fincorp Capital added insight into the quality of a company’s management, culture, risk profile and other characteristics. As the chart below suggests, a company’s ESG activities have the potential to positively impact its financial performance over the long term.

Area of focus


Potential impact on financial performance


  • Resource management and pollution prevention

  • Reduced emissions and climate impact

  • Environmental reporting/disclosure

  • Avoid or minimize environmental liabilities

  • Lower costs/increase profitability through energy and other efficiencies

  • Reduce regulatory, litigation and reputational risk

  • Indicator of well-governed company



  • Diversity
  • Health and safety
  • Labor-Management relations
  • Human rights

Product Integrity

  • Safety
  • Product quality
  • Emerging technology issues


  • Impact
  • Community relations
  • Responsible lending
  • Corporate philanthropy


  • Improved productivity and morale
  • Reduce turnover and absenteeism
  • Openness to new ideas and innovation
  • Reduce potential for litigation and reputational risk

Product Integrity

  • Create brand loyalty
  • Increase sales based on products safety and excellence
  • Reduce potential for litigation
  • Reduce reputational risk

Community Impact

  • Improve brand loyalty
  • Protect license to operate

Corporate Governance

  • Executive compensation

  • Board accountability

  • Shareholder rights

  • Reporting and disclosure

  • Align interests of shareowners and management

  • Avoid negative financial surprises or “blow-ups”

  • Reduce reputational risk