![Environmental, Social and Governance (ESG) Criteria](https://img-cdn.financeunlocked.com/headers-images/financeunlocked/3.jpg?ik-sdk-version=javascript-1.0.3)
Environmental, Social and Governance (ESG) Criteria
Environmental, social, and governance (ESG) criteria are the criteria, standards and targets that companies lay out to define their pathways to dealing with climate-change mitigation e.g. by cutting greenhouse gas emissions, and improving their social and governance metrics (such as fair employment practices; gender representation; gender pay equality; executive compensation; community engagement; water, energy and paper usage; waste management) through shifts in business model and changes in modes of corporate behaviour. Investors use ESG criteria to help define how they assess and screen companies that meet their investment standards.