What is ESG? A Clear Guide to Environmental, Social, and Governance
ESG, which stands for Environmental, Social, and Governance, is a set of criteria used to evaluate a company's performance beyond financial metrics. It is a key aspect of sustainability, as defined by the UN , meaning meeting the needs of the present without compromising future generations' ability to meet theirs. As investors increasingly factor in ESG considerations, many businesses are integrating these criteria into their strategies and operations. ESG encompasses environmental impact, social responsibility, and governance practices, providing a comprehensive