What is the S in ESG investing?

ESG has come into the investing lexicon in the last couple years. Understanding ESG can help investors make informed decisions for their own investments?

Reuters offers an explanation.
S is The social component of ESG covers all the ways companies interact with their employees and the communities in which they operate.

It’s not simple. What is “social” for one sector/industry may not be “social” for a different sector/industry.
Of course, social risks and their potential financial impact vary from industry to industry. For example, investors may give more weight to workplace safety standards at an oil drilling company than at a software firm, while customer data protection may pose a higher risk for the software business than the oil driller.

Explainer: What is the ‘S’ in ESG investing?

ESG investing is becoming more visible as more investors become aware of the machinations of the companies in which they invest.
Some hedge funds, such as Blackrock, use ESG as filter when evaluating potential investments.

Blackrock Advisors is a major hedge fund, managing trillions of dollars.

Texas GICs don’t like ESG, therefore, Texas is in the process of passing laws to PREVENT Texas state agencies (such as Texas retirements funds) investing in hedge funds such as Blackrock.

Analysis: BlackRock too green for Texas; rest of Wall Street okay - for now
Aug 30 (Reuters) - Most big Wall Street firms passed a test for business as usual in Texas last week when state Comptroller Glenn Hegar kept all but BlackRock Inc.(BLK.N) off a list of companies whose stance on boycotting oil and gas stocks could trigger divestment by public agencies.

May we live in investing times.