ESG stands for Environmental, Social and Governance. These are factors used in an investment process to determine the strength of a company in respect of sustainability.
Environmental factors look at a company's impact on climate change (both positively and negatively).
Social factors consider a company's record on human rights, how employees are treated and involvement with the local community amongst other things.
Good corporate governance involves balancing the interests of various stakeholders in a business. For investors, they will want to know that shareholders' interests are being considered by the board of directors.
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