ESG (Environmental, Social, and Governance) represents an analysis of the sustainability of an organization through the prism of three factors: environment, social and governance.

ESG factors are a set of non-financial metrics that are used to evaluate a company’s performance in these areas.

• Environmental factors refer to a company’s impact on the environment, such as its carbon footprint, energy and water use, and waste management practices.
• Social factors refer to a company’s impact on people and communities, including labor practices, human rights and community involvement.
• Governance factors refer to a company’s internal management and control systems, including board composition, executive compensation, and shareholder rights.

Investors, regulators and other stakeholders are paying more attention to companies’ ESG performance and using this information to make investment decisions, assess risks and hold companies accountable for their actions. As a result, many companies are taking steps to improve their ESG performance and report to stakeholders on their ESG activities.