Environmental Social and Governance (ESG)

Environmental, Social, and Governance (ESG) refers to a set of non-financial criteria used to evaluate a company’s operations and long-term sustainability. Environmental factors assess a company’s impact on nature (e.g., carbon emissions, resource use). Social factors examine relationships with employees, communities, and stakeholders (e.g., labor practices, diversity). Governance focuses on internal controls and leadership (e.g., board structure, executive pay). ESG principles guide responsible investing and corporate behavior by promoting transparency, ethics, and risk management.