ESG

Environmental, Social, and Governance (ESG) is a framework used to evaluate an organization's business practices and performance on various sustainability and ethical issues. It encompasses three main components: Environmental (assesses how a company performs as a steward of nature, including factors like carbon emissions, energy efficiency, and pollution mitigation), Social (examines how a company manages relationships with employees, suppliers, customers, and communities, covering aspects such as labor rights, diversity policies, and data privacy), and Governance (evaluates a company's leadership, executive pay, audits, internal controls, and shareholder rights, focusing on ethical business practices and board structure). ESG criteria are increasingly used by investors to screen potential investments, aiming to identify companies that are not only financially sound but also committed to sustainable and ethical practices.