Environmental, Social, and Governance (ESG) factors

Environmental, Social, and Governance (ESG) factors are categories used to evaluate a company's sustainability and ethical impact. "Environmental" considers how a company treats natural resources, like reducing pollution and carbon emissions. "Social" looks at how a company manages relationships with employees, communities, and customers, including fair labor practices and diversity. "Governance" assesses how a company is run, focusing on leadership, transparency, and ethical decision-making. Investors use ESG factors to identify businesses committed to responsible practices that can also indicate long-term stability and success.