Environmental Social Governance (ESG)

Environmental, Social, and Governance (ESG) refers to a set of criteria that measure a company's impact and responsibility beyond just financial performance. Environmental factors assess how a company manages issues like pollution, resource use, and climate change. Social aspects focus on how it treats employees, customers, and communities. Governance looks at how the company is run, including transparency, ethical practices, and leadership structure. Investors use ESG to evaluate a company's long-term sustainability and ethical impact, often guiding decisions that balance profit with positive societal and environmental contributions.