ESG Funds

ESG Funds are investment funds that focus on companies and assets that meet specific Environmental, Social, and Governance (ESG) criteria. These funds aim to generate positive social and environmental impacts while also achieving financial returns.The "Environmental" aspect considers how a company performs as a steward of the natural environment, including its efforts in areas like carbon emissions, waste management, and resource conservation. The "Social" criteria examine how a company manages relationships with its employees, suppliers, customers, and the communities in which it operates, focusing on issues such as labor practices, diversity, and human rights. The "Governance" component pertains to the internal systems of practices, controls, and procedures a company adopts to govern itself, covering areas like board diversity, executive compensation, and shareholder rights.Investors in ESG Funds may prioritize sustainability, ethical considerations, and corporate responsibility, and such funds can appeal to those looking to align their investments with their values. ESG investing has gained traction in recent years as awareness of social and environmental issues increases among investors and the general public.