ESG stands for Environmental, Social, and Governance, which refers to the three key factors that companies and organizations use to evaluate their performance and measure their sustainability and societal impact. ESG factors are used by investors, analysts, and other stakeholders to assess the sustainability and ethical impact of a company’s operations, as well as its potential risks and opportunities.

Environmental factors relate to a company’s impact on the natural environment, such as its carbon footprint, energy use, waste management, and pollution control. Social factors refer to a company’s impact on people and communities, including its treatment of employees, customers, suppliers, and other stakeholders. Governance factors focus on a company’s internal policies and procedures, such as its leadership structure, board composition, and accountability to shareholders.

The ESG framework is increasingly being used as a way for companies to demonstrate their commitment to sustainability and responsible business practices, and for investors to evaluate the long-term viability of their investments.