Explains ESG factors
Environmental FactorsThis focuses on a company's impact on the environment, including its efforts to reduce carbon emissions, conserve resources, manage waste, and support renewable energy initiatives. This factor examines how businesses address climate change, pollution, and ecological sustainability. Social FactorsThis covers how a a company treats its employees, customers, suppliers, and communities. It evaluates social aspects such as diversity and inclusion, labor practices, human rights, product safety, community engagement, and philanthropy. Governance FactorsThis factor evaluates the mechanisms that guide a company's decision making processes and accountability. This includes aspects like board structure pay practices, transparency levels, in operations, risk management strategies, and anti corruption policies.