Understandings of ESG

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ESG stands for Environmental, Social, and Governance criteria used to evaluate a company's sustainability and ethical impact.

ESG criteria are used by investors to assess the sustainability and ethical impact of a company.
Environmental criteria focus on a company's impact on the environment, such as carbon emissions and resource usage.
Social criteria evaluate a company's relationships with employees, customers, suppliers, and the communities in which it operates.
Governance criteria assess the company's leadership, executive pay, audits, internal controls, and shareholder rights.
Companies with strong ESG performance are often seen as more sustainable and responsible investments.
Examples of ESG factors include diversity and inclusion policies, energy efficiency initiatives, and board diversity.