Environmental Social Governance (ESG) Explained

The Environmental portion of 'ESG' focuses on companies making changes to lessen their carbon footprint and taking strides to attempt to achieve net zero by 2050. This takes into account climate change strategy that the company has in place, plans and actions to reduce emissions and energy efficiency. 

The Social segment of ESG looks at companies who are socially responsible by putting in regulations and standards to provide every employee and individual with equal opportunities.

This area dives into businesses ethics, increasing shareholder and board diversity as well as stakeholder engagement.