There are no separate Environmental, Social, and Governance (ESG) criteria, believe it or not. That might change under the Biden administration, but ESG does not figure into the Opportunity Zone rules at all.
Ask A Question
What is the Environmental, Social, and Governance (ESG) criteria if I want to focus my OZ investment on that area?
Answers
Indeed, environmental, social and governance (ESG) investing continues to grow in significance with both institutional and retail investors, and its alignment with consumer behavior continues to grow as well. We have observed that companies increasingly seek to become more mission-driven through the adoption of clear and transparent ESG frameworks. Further, we are seeing that an emphasis on better outcomes for all stakeholders is increasingly becoming a source of competitive advantage. It is already well-evidenced that businesses with strong ESG practices can achieve attractive investment returns. In an era where more and more people want to work for, buy from and invest in organizations that share their values, we believe companies that have a positive impact on society and the planet will be better-placed to succeed and grow sustainably.
As a pending signatory of the Principles for Responsible Investing (PRI), I can provide some deeper insight. A group of investors has established “6 Principles for Responsible Investing” which has earned the UNEP Finance Initiative and UN Global Compact full support. The United Nations (UN) would like for investors to think in terms of integration of these principles (PRI) and is also providing a platform for education and research solutions for asset managers, investment managers and service providers. To find out more on these Environmental, Social, and Governance (ESG) principles, visit UNPRI.org.
DISCLAIMER:the information found on this website is intended to be general information; it is not legal or financial advice. Specific legal or financial advice can only be given by a licensed professional with full knowledge of all the facts and circumstances of your particular situation. You should seek consultation with legal and financial experts prior to participating in any aspect relating to Opportunity Zones. Posting a question on this website does not create an attorney-client relationship. All questions you post will be available to the public; do not include confidential information in your question.