What is ESG?

ESG stands for Environmental, Social, and Governance. It is a framework or set of standards used to evaluate a company's impact and performance across these three key areas. Investors, stakeholders, and the public use ESG factors to assess a company's sustainability and ethical impact. * **Environmental:** Considers a company's impact on the natural environment, including its use of resources, waste management, pollution, and carbon emissions. * **Social:** Examines a company's relationships with its employees, customers, suppliers, and the communities where it operates, encompassing aspects like labor practices, human rights, diversity and inclusion, and product safety. * **Governance:** Focuses on a company's leadership, corporate governance structure, ethics, and risk management practices. This includes board independence, executive compensation, and transparency.