ESG stands for Environmental, Social, and Governance, and it refers to the three central factors used to measure the sustainability and societal impact of an investment in a company. Companies that prioritize ESG criteria focus on their environmental responsibility, social justice initiatives, and strong governance practices. This holistic approach helps investors gauge the long-term viability of companies by understanding how they manage risks and opportunities related to these areas.
congrats on reading the definition of ESG. now let's actually learn it.