ESG stands for Environment (environment), Social (social), Governance (responsible business management).
Environmental criteriaThey take into account how a company or an issuer operates and engages in reducing risks such as climate change, CO2 emissions, air and water pollution, waste of resources and waste disposal, and deforestation.
Social criteriaThey evaluate how a company adopts and complies with gender policies, human rights, labor rights and standards as well as relations with the very communities in which it operates.
Governance criteriaThese pertain to responsible corporate governance, i.e., corporate governance practices, including manager pay policies, membership of the board of directors, auditing procedures, and the behavior of top management and the company in terms of compliance with laws and codes of ethics.