ESG stands for Environmental, Social, and Governance. It is a set of standards for a company's operations that focus on how it manages its environmental impact, treats its employees and other stakeholders, and adheres to good corporate governance practices.
Environmental, Social, and Governance (ESG) is a set of criteria used to measure the sustainability and ethical impact of an investment in a company or organization. ESG criteria are used to evaluate the performance of a company or organization in terms of its environmental, social, and governance practices.
Environmental criteria assess how a company or organization manages its environmental impact. This includes evaluating the company’s energy use, waste management, and water usage. It also looks at the company’s efforts to reduce its carbon footprint and its commitment to renewable energy sources.
Social criteria assess how a company or organization manages its relationships with its employees, customers, and other stakeholders. This includes evaluating the company’s policies on diversity and inclusion, labor rights, and health and safety. It also looks at the company’s commitment to ethical business practices and its efforts to create a positive work environment.
Governance criteria assess how a company or organization is managed. This includes evaluating the company’s board of directors, executive compensation, and shareholder rights. It also looks at the company’s commitment to transparency and accountability.
ESG criteria are used by investors to assess the sustainability and ethical impact of their investments. By evaluating a company or organization’s performance in terms of its environmental, social, and governance practices, investors can make more informed decisions about where to invest their money. ESG criteria can also be used by companies and organizations to assess their own performance and identify areas for improvement.