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Home » Glossary Terms » Environmental, Social, Governance (ESG)

Environmental, Social, Governance (ESG)

ESG stands for Environmental, Social, and Governance. It is a framework used to evaluate a company’s ethical impact and sustainability practices:
Environmental: Assesses a company’s impact on the planet, including waste management and resource use.
Social: Evaluates relationships with stakeholders, focusing on issues like employee treatment, diversity, and community engagement.
Governance: Examines the company’s leadership, transparency, and ethical practices.
ESG criteria help investors and stakeholders understand a company’s commitment to sustainability and social responsibility.

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