ELI5: Explain Like I'm 5

esg

ESG stands for "Environmental, Social, and Governance". It's a way of evaluating how companies are handling the environment, their social impact, and how well they are governed. It helps investors decide if a company is a good choice for them to invest in. For example, if a company takes care of the environment and has good policies to help their workers, that might be a “good” company and a better choice for an investor.