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What Is an ESG Rating?

By Kristi WaterworthUpdated Aug 7, 2025 at 9:32 PM

Key Points

  • ESG ratings analyze a company's management of environmental, social, and governance risks.
  • Investors can integrate ESG ratings with financial analysis to assess long-term risks and opportunities.
  • High ESG scores indicate effective risk management, impacting investment decisions and potential returns.

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