What is ESG?

ESG stands for Environmental, Social and Governance respectively, which are a set of standards for environmentally conscious investors to use in making investment decisions. The environmental criteria looks at a company’s emissions, use of resources, and the company’s impact on the environment and natural resources. The social criteria examines a company’s employment and labour practices, operating practices, and community investment. Governance looks into a company’s policies and how a company is governed as well as other areas such as corruption, board diversity and structure.