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Environmental, Social, and Governance (ESG) refers to criteria used to evaluate a company’s performance on environmental protection, social responsibility, and governance practices. In trading, ESG factors are increasingly important as investors seek companies aligned with sustainability and ethical standards. ESG investing focuses on long-term value creation and risk mitigation by considering a company’s impact on the environment, treatment of employees, and adherence to ethical business practices. ESG strategies influence both equity and bond market choices.
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