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Environmental, Social, and Governance (ESG)
Environmental, social, and governance (ESG) refers to the three pillars of sustainability that are used to evaluate the performance of a company or investment in relation to its impact on society and the environment.
The environmental pillar refers to a company's impact on the natural environment and its efforts to reduce its environmental footprint. This can include things like a company's use of renewable energy, its carbon emissions, and its waste management practices.
The social pillar refers to a company's impact on society and its efforts to be a responsible corporate citizen. This can include things like a company's treatment of its employees, its relations with communities, and its commitment to diversity and inclusion.
The governance pillar refers to a company's leadership, transparency, and accountability. This can include things like a company's board of directors, its executive leadership, and its policies and practices related to ethical behavior and compliance.
ESG is an important consideration for investors who are interested in aligning their investments with their values and who want to support companies that are responsible and sustainable.
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