
ESG (Environmental, Social, Governance) criteria
ESG criteria refer to a set of standards used to evaluate a company's operations and growth potential based on its impact beyond just financial performance. "Environmental" assesses how a company manages environmental risks and sustainability, such as reducing pollution or conserving resources. "Social" looks at how it treats people—employees, communities, and customers—focusing on fair practices and social responsibility. "Governance" examines how a company's leadership and policies ensure transparency, ethical decision-making, and accountability. Together, ESG helps investors identify companies that are responsible, sustainable, and likely to succeed long-term, aligning financial goals with positive societal and environmental impact.