Environmental, Social, and Governance (ESG) Support

ESG is a term associated with Environmental, Social and Governance factors to improve sustainability. Investors evaluate a company's progress toward sustainability based on ESG factors:

  • Environmental factors include contributions a company or government makes to climate change through reductions in greenhouse gas emissions (e.g., a net-zero or carbon neutral initiative), waste management, and energy efficiency.
  • Social factors include human rights, labor standards, illegal child labor, and routine workplace health and safety. A company's social score is improved by community involvement and acceptance.
  • Governance factors include defining rights, responsibilities, and expectations to align interests among stakeholders to support a company's long-term strategy.