ESG (Environmental, Social, Governance)

ESG refers to a set of criteria used to evaluate a company’s operations and performance in three areas: environmental impact, social responsibility, and governance practices. Environmental criteria consider how a company performs as a steward of nature. Social criteria examine how it manages relationships with employees, suppliers, customers, and communities. Governance deals with a company’s leadership, executive pay, audits, internal controls, and shareholder rights. ESG factors are increasingly important to investors seeking to invest responsibly.