What are some examples of ESG criteria?
ESG criteria refer to environmental, social, and governance factors used to evaluate investments. Examples include carbon emissions, labor practices, and board diversity.
Can you give me specific examples of each category?
Sure! For environmental, an example is a company's carbon footprint. For social, consider employee treatment and community engagement. For governance, look at executive pay and shareholder rights.
How do companies measure their ESG performance?
Companies often use ESG ratings from third-party agencies, sustainability reports, and key performance indicators (KPIs) to measure their performance.
Why is ESG important for investors?
ESG is important for investors because it helps assess risks and opportunities that can impact long-term financial performance.
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