ESG stands for Environmental, Social, and Governance.
It is a set of criteria used to evaluate a company’s performance in these three areas.
- Environmental criteria assess a company’s impact on the environment and natural resources.
- Social criteria evaluate the company’s impact on society and its stakeholders, including employees, customers, and local communities.
- 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.