ESG, which stands for Environmental, Social, and Governance, represents a set of critical factors that measure a company's commitment to sustainable and ethical business practices.
"Environmental" pertains to how a company manages its impact on the planet, encompassing issues like carbon emissions, resource usage, and sustainability.
"Social" focuses on how a company interacts with its stakeholders, including employees, communities, and customers, and addresses concerns related to diversity, safety, and corporate social responsibility.
"Governance" involves examining the company's leadership, ethics, accountability, and transparency, ensuring that it adheres to strong corporate governance practices.
By considering ESG factors, organizations aim to not only achieve financial success but also promote sustainability, inclusivity, and ethical conduct in their operations, ultimately benefiting both their business and society at large.