Browsing Category ESG

ESG stands for Environmental, Social, and Governance. It is a framework used to evaluate the sustainability and ethical impact of a company or investment. ESG assessments are used by investors to determine whether a company is managing its environmental and social impact responsibly and ethically, and whether it is making progress towards sustainability.

The environmental component of ESG evaluates a company’s impact on the environment, such as its carbon emissions, waste management practices, and resource use. The social component evaluates a company’s impact on society, including its treatment of employees, the safety of its products, and its relationship with local communities. The governance component evaluates a company’s management structure, corporate culture, and overall ethical practices.

Investors use ESG assessments to make informed decisions about which companies to invest in. Companies that score well on ESG metrics are often seen as more responsible and sustainable, which can result in increased investment and a better reputation. Companies that score poorly on ESG metrics may be seen as high-risk investments, which can result in decreased investment and a poor reputation.