Environmental, Social, and Governance (ESG) criteria are becoming critical in investment decisions as investors increasingly demand corporate accountability and sustainable business practices.

New regulatory frameworks aim to standardize ESG reporting and prevent greenwashing, providing investors with more reliable data to make informed decisions. These frameworks are creating transparency in how companies address environmental challenges, social responsibilities, and governance practices.

Investors are demanding tangible impact measurements alongside financial returns, driving companies to implement measurable sustainability initiatives and demonstrate real-world positive outcomes beyond marketing rhetoric.