ESG Framework:

ESG stands for Environmental, Social, and Governance. It is a framework used to evaluate a company's performance and impact in these three key areas:

Environmental (E): This dimension assesses a company's efforts and impact on environmental sustainability. It includes factors such as a company's carbon emissions, energy efficiency, waste management, water usage, and its overall environmental footprint. Companies that are environmentally responsible typically aim to reduce their negative impact on the environment and may adopt practices like renewable energy usage, carbon offsetting, and sustainable sourcing of materials.

Social (S): The social aspect of ESG focuses on a company's interactions with its employees, customers, suppliers, and the broader community. This includes aspects like labor practices, employee diversity and inclusion, health and safety, human rights, and community engagement. Companies that prioritize social responsibility often strive to create fair and inclusive workplaces and engage in philanthropic activities to benefit society.

Governance (G): Governance refers to the system of rules, practices, and processes by which a company is directed and controlled. This includes factors such as the composition and independence of the board of directors, executive compensation, shareholder rights, transparency in financial reporting, and adherence to ethical and legal standards. Strong governance is seen as a measure of a company's integrity and ethical behavior.

ESG criteria have gained significant importance in the world of finance and investment. Many investors, including institutional investors and asset managers, consider ESG factors when making investment decisions. Companies that perform well in these areas are often seen as more sustainable, responsible, and potentially less risky investments.

ESG investing is also sometimes referred to as sustainable investing or socially responsible investing (SRI). It reflects a growing recognition that companies with strong ESG practices may be better positioned for long-term success and are better aligned with the values and concerns of many investors and stakeholders.

?

?

?

?