What is Environmental, Social, and Governance (ESG)? Professional Definition
Environmental, Social, and Governance (ESG) is Framework for evaluating sustainability and ethical impact This is a widely used professional term in related fields.
A set of standards used by investors to assess a company’s performance in environmental protection, social responsibility, and corporate governance practices. ESG investing integrates these non-financial factors into investment decisions to generate long-term sustainable returns.
Frequently Asked Questions
- Q: How is this term applied in financial analysis?
A: It helps analysts evaluate risks, returns and market performance in finance. - Q: Why is this term important for investors?
A: It guides investors to make rational decisions and avoid financial risks. - Q: What scenarios does this financial term apply to?
A: It is commonly used in banking, stocks, funds and wealth management.
Reference Source: Environmental, Social, and Governance (ESG) Official Document