There's a three-letter acronym used frequently in the financial services industry, in the halls of academia, and in public sector institutions: ESG.

ESG stands for environmental, social, and governance, and it represents a new framework for how businesses can contribute to solving global challenges related to climate change, human rights, and ethical business practices.

This area of interest represents a shift in focus from a shareholder perspective to a broader stakeholder perspective. In the past, sustainability, employee well-being, and ethical supplier relations were often sacrificed in order to maximize shareholder wealth. Businesses are now realizing the importance of considering the needs of each stakeholder: customers, employees, suppliers, creditors, governments, communities, and of course, shareholders.