What does ESG stand for?

ESG stands for Environmental, Social, and Governance. These are criteria used to evaluate a company's operations and behavior for sustainable and ethical impact beyond traditional financial metrics.

Why is ESG important for investors?

ESG helps investors identify companies with strong sustainability practices, lower long-term risks, and potential for resilient financial performance. It aligns investments with ethical values and future-proof business models.

What are some examples of 'E' (Environmental) factors?

'E' factors include carbon emissions, waste management, water usage, renewable energy adoption, pollution prevention, and biodiversity conservation efforts.

What does the 'S' (Social) in ESG encompass?

The 'S' covers social aspects like labor practices, diversity and inclusion, employee relations, community engagement, human rights, and consumer privacy and safety.

What are examples of 'G' (Governance) factors?

'G' factors involve corporate board diversity, executive compensation, shareholder rights, business ethics, anti-corruption policies, and transparency in financial reporting.