Environmental, Social, and Governance (ESG) Criteria

ESG criteria are a set of standards used by investors to evaluate a company's operations and performance based on environmental, social, and governance factors. Environmental criteria consider how a company manages its impact on the planet, including its carbon footprint, waste management, and resource use. Social criteria examine how a company treats its employees, customers, and communities, focusing on issues like labor practices, human rights, and community engagement.

Governance criteria assess a company’s leadership, ethical conduct, and accountability, including board diversity, executive compensation, and transparency. ESG criteria are increasingly used by investors to identify risks and opportunities that may not be apparent through traditional financial analysis. Companies that perform well on ESG criteria are often seen as more resilient, innovative, and better positioned for long-term success in a rapidly changing world.