What is ESG?

There is a lot of talk about ESG these days, but what does it actually mean?

ESG stands for Environmental, Social, and Governance. Essentially, it is a way of measuring the sustainability and societal impact of a company or organization.

ESG factors can include things like a company's greenhouse gas emissions, its treatment of workers, and its compliance with regulations.

Investors are increasingly interested in ESG factors when making decisions about where to invest their money. They believe that companies with strong ESG ratings are more likely to be financially successful in the long-term.

There is still a lot of debate about whether or not ESG factors are actually meaningful. Some critics argue that the criteria are too vague and that there is no clear evidence that investing in companies with good ESG ratings actually pays off.

Regardless of where you stand on the issue, it's clear that ESG is becoming an increasingly important factor in the world of finance. And it's likely that we'll be hearing a lot more about it in the years to come.