Companies are being asked new questions regarding sustainability. Shareholders are actively requiring management of environmental, social, and governance (ESG) risks to protect their reputations, avoid legal and financial liabilities, and drive corporate decisions to improve ESG metrics.
The following is a brief summary of ESG criteria:
•Environmental: considers how a company performs as a steward of nature.
•Social: examines how a company manages relationships with employees, suppliers, customers, and the communities where it operates.
•Governance: deals with a company’s leadership, executive pay, audits, internal controls, and shareholder rights.
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