ESG (Environmental, Social, Governance)

ESG stands for Environmental, Social, and Governance, and it refers to a set of standards that evaluate a company's responsible practices. Environmental criteria look at how a company manages its impact on nature, such as reducing pollution or conserving resources. Social factors consider how it treats employees, customers, and communities, promoting fair labor practices and social responsibility. Governance involves how a company is run, including transparency, ethical leadership, and shareholder rights. Investors use ESG to assess a company's long-term sustainability and ethical standing, fostering responsible investing that aligns financial performance with positive societal impact.