ENVIRONMENTAL CRITERIA Environmental criteria consider how a company performs as a steward of nature. Concerns in this category include how much pollution and waste an organization produces and how it handles reducing these issues. Additionally, this element examines how a company uses renewable energy sources and what actions they are taking to reverse climate change. SOCIAL CRITERIA Social criteria address how an organization manages social relationships with employees, suppliers, customers, and the communities where it operates. Concerns covered here include diversity, human rights and healthcare, and the impact that a certain company has on its social environment in the community. GOVERNANCE Governance deals with a company’s leadership, executive pay, audits, internal controls, and shareholder rights. It examines how the executive management and the board of directors address stakeholders’ concerns and interests and the influence base on the structure of the board of directors, shareholders’ rights, and transparency.
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