ESG stands for Environmental, Social, and Governance. It is a framework used to measure and evaluate a business's impact and performance in three key areas:
- Environmental : How the company minimizes its impact on the environment, including factors like energy use, carbon emissions, waste management, pollution, and sustainability practices.
- Social : How the company manages relationships with employees, suppliers, customers, and communities, focusing on labor practices, diversity and inclusion, human rights, workplace safety, and community engagement.
- Governance : How the company is governed, including leadership structure, executive compensation, board management, shareholder rights, transparency, and ethical business practices.
ESG is widely used by investors to assess risks and opportunities related to sustainability and ethical impact, and it also serves as a guide for companies to improve their long-term resilience and accountability
