Environment, Social, and Governance (ESG) criteria

Environment, Social, and Governance (ESG) criteria are standards used to evaluate a company's practices beyond financial performance. Environment assesses how a company manages its impact on natural resources, such as pollution and climate change. Social examines how it treats employees, customers, and communities, focusing on fairness and human rights. Governance looks at how the company is run, including leadership, transparency, and ethical conduct. Investors use ESG criteria to identify companies with sustainable, responsible practices that can reduce risks and promote long-term success. Essentially, ESG helps measure a company's broader impact on society and the planet.