ESG stands for Environmental, Social, and Governance, which are criteria used to evaluate a company's operations and impact. The Environmental aspect focuses on how a company manages its ecological footprint, including issues like climate change and resource use. The Social component examines how a company interacts with its employees, customers, and communities, addressing factors like labor practices and community engagement. The Governance part assesses a company's leadership, transparency, and ethical practices, including board diversity and executive compensation. Investors increasingly consider ESG factors when making decisions, as they believe that companies with strong ESG practices may be more sustainable and resilient in the long term.