×
What is ESG?
ESG stands for Environmental, Social, and Governance - a framework used to evaluate how sustainable and ethical a company's business practices are.
- Environmental: How the company impacts the environment (carbon footprint, renewable energy, waste management)
- Social: How the company treats employees, customers, and communities (diversity, labor practices, data privacy)
- Governance: How the company is managed (board diversity, executive compensation, business ethics)
Companies with higher ESG scores are generally considered more sustainable and may be better long-term investments, though this can vary by individual priorities.