ELI5: Explain Like I'm 5

Environmental, social and corporate governance

Environmental, social and corporate governance (ESG) is a way of measuring how companies are affecting the world around us. It includes things like a company's carbon footprint (how much pollution their activities create), how much money they pay their workers, and how well they treat their customers. ESG tries to measure how companies are impacting people, the planet, and the economy. Companies usually get scored on a scale of 1 to 100, with higher numbers being better. This helps investors decide if they want to put their money into a particular company or not.