ESG (Environmental, Social, Governance Criteria)

Environmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. Environmental criteria consider how a company performs as a steward of nature. Social criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. Governance deals with a company’s leadership, executive pay, audits, internal controls, and shareholder rights.

ESG (environmental, social and governance) is a general term used in capital markets and used by investors to evaluate corporate behavior and to determine the future financial performance of companies. — Financial Times


Investors are increasingly concerned about the fact that revenue targets and returns must be aligned with core principles of ESG