ESG refers to the environmental, social, and governance factors used to evaluate a company's operations' sustainability and ethical impact.

  • Environmental factors include a company's environmental impact, such as carbon emissions, waste management practices, and resource usage.
  • Social factors refer to a company's impact on its employees, customers, and society, including human rights, labour practices, and community engagement.
  • Governance factors are concerned with a company's internal governance and management structure, including its board of directors, executive compensation, and policies on corruption and bribery.

ESG considerations are becoming increasingly important for investors interested in sustainable investing who want to align their investments with their values.

Companies that perform well on ESG factors are seen as more sustainable and ethical, which can translate into better long-term financial performance.