ESG stocks are shares of companies that score positively on Environmental, Social, and Governance criteria—a framework used to evaluate how responsibly a business is managed beyond its financial performance. Environmental factors include carbon emissions and resource usage; social factors cover labour practices, supply chain ethics, and community impact; governance factors assess board independence, executive compensation, and shareholder rights. In India, SEBI has mandated Business Responsibility and Sustainability Reporting (BRSR) for the top 1,000 listed companies, increasing ESG transparency. Several domestic mutual funds now offer ESG-themed schemes, reflecting growing investor interest in sustainable and responsible investing.