ESG (Environmental, Social, and Governance) Criteria

ESG criteria refer to a set of standards that help evaluate a company's impact and sustainability across three key areas: Environmental (its effect on the planet, including pollution and resource use), Social (its relationships with employees, customers, and communities, including issues like labor practices and diversity), and Governance (how it is managed, focusing on leadership, ethics, and transparency). Investors use ESG criteria to assess risks and opportunities, as companies with strong ESG practices are often seen as more sustainable and responsible, potentially leading to better long-term performance.

Additional Insights

ESG stands for Environmental, Social, and Governance criteria, which are standards used to evaluate a company's operations and impact. - **Environmental** assesses how a company manages its ecological footprint, including pollution and resource use. - **Social** examines how it interacts with employees, customers, suppliers, and communities, focusing on human rights and diversity. - **Governance** looks at the company’s management practices, transparency, and accountability. Investors use ESG criteria to make informed decisions, as companies demonstrating strong ESG practices are often seen as more sustainable and responsible, potentially leading to better long-term performance.