Environmental, Social, and Governance (ESG) Criteria

Environmental, Social, and Governance (ESG) criteria are standards for a company’s operations that impact the world beyond just profits. Environmental factors examine how a company manages its ecological footprint, like carbon emissions and resource use. Social criteria consider how it treats employees, customers, and communities, including labor practices and community engagement. Governance looks at how a company is run, focusing on leadership, ethics, and transparency. Businesses increasingly use ESG criteria to measure sustainability and ethical impact, guiding investors and consumers in making informed choices about where to invest their money or which brands to support.