Consideration of environmental, social, and governance (ESG) issues is becoming increasingly important for companies when conducting business and in dealings with investors and employees. The increased emphasis on ESG poses unique and difficult challenges for companies that can have a direct impact on their financial performance and broader perception as responsible corporate citizens. The environmental component broadly refers to the consideration of an organization’s efforts with regard to addressing environmental challenges, including pollution, climate change and related risks, and conservation, as well as a company’s overall environmental impact. In some circumstances, inadequate attention to environmental issues may create regulatory compliance concerns for companies. With regard to employment issues, the environmental component could include issues such as policies to encourage employees to implement environmentally responsible behaviors at work.