ESG

Environmental, Social, and Governance

ESG (Environmental, Social, and Governance) is a set of criteria used to evaluate a company’s impact on the environment, its relationship with stakeholders (such as employees, customers, and communities), and its corporate governance practices.

• Environmental factors assess how a company manages risks related to environmental issues, such as climate change, waste, and resource use.
• Social criteria evaluate the company’s relationships with employees, suppliers, customers, and communities.
• Governance focuses on a company’s leadership, executive pay, audits, internal controls, and shareholder rights.

ESG is increasingly used by investors to assess the sustainability and ethical impact of companies.