Environmental, Social, and Governance (ESG)

Environmental, Social, and Governance (ESG) refers to the three central factors used to measure the sustainability and societal impact of a company. "Environmental" looks at how a company impacts nature, such as pollution and resource use. "Social" assesses how it manages relationships with employees, suppliers, customers, and communities, focusing on areas like labor practices and community engagement. "Governance" examines the company's leadership, ethics, and accountability. In corporate governance and compliance, strong ESG practices help ensure that companies act responsibly, meet regulatory standards, and contribute positively to society while also driving long-term financial performance.