What is ESG?

ESG stands for Environmental, Social, and Governance.

It is a set of criteria used to evaluate a company’s performance in these three areas.

1. Environmental criteria assess a company’s impact on the environment and natural resources.
2. Social criteria evaluate the company’s impact on society and its stakeholders, including employees, customers, and local communities.
3. Governance criteria focus on the company’s internal controls, ethics, and transparency.

ESG factors are increasingly used to evaluate the long-term sustainability of companies and inform investment decisions.