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What is ESG Scoring?

ESG scoring evaluates a company’s performance on environmental, social, and governance factors. These scores help investors assess the sustainability and ethical impact of their investments. ESG scoring involves analyzing various criteria, such as carbon emissions, labor practices, and governance structures. High ESG scores indicate strong performance in managing sustainability risks and opportunities. ESG scoring is used by investors to make informed decisions and align their portfolios with their values. It supports the integration of ESG considerations into financial markets.

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