ESG stands for Environmental, Social, and Governance. Based on these three criteria, companies are evaluated according to social and ecological aspects and responsible corporate governance.

Environmental: For environmental aspects, the strategy for climate protection, careful resource management, the use of renewable energy, and the minimization of greenhouse gas emissions play an important role.

Social: Companies are committed to creating fair working conditions, protecting health and safety in the workplace, and respecting human rights and diversity.

Governance: Corporate governance focuses on aspects related to corporate values and control processes, such as the exclusion of corruption and anti-competitive behavior.

ESG criteria are reviewed and assessed by rating agencies to ensure that companies maintain these standards.

Do you find the explanation helpful?