Ecolab Inc. (ECL), headquartered in St. Paul, Minnesota, is an American global provider of water, hygiene and energy technologies and services to the food, energy, healthcare, industrial and hospitality markets.
Lately, I've been tracking companies that rank higher on various ESG guidelines. ESG refers to the three central factors in measuring the sustainability and ethical impact of an investment in a company or business: Environmental, Social and Governance. For instance, Ecolab is the 2nd biggest position (after Microsoft) in the MSCI USA ESG Select Index. This index is optimized to be sector diversified, targeting companies with high ESG ratings in each sector.
Lately, I've been tracking companies that rank higher on various ESG guidelines. ESG refers to the three central factors in measuring the sustainability and ethical impact of an investment in a company or business: Environmental, Social and Governance. For instance, Ecolab is the 2nd biggest position (after Microsoft) in the MSCI USA ESG Select Index. This index is optimized to be sector diversified, targeting companies with high ESG ratings in each sector.
The question is whether these criteria could help to better determine the future financial performance of companies and the potential return for its investors. Let's take a look at Ecolab and discuss whether it can be a good addition to your portfolio at current prices.
