In recent years, Environmental, Social, and Governance (ESG) criteria have emerged as key factors in assessing the sustainability and ethical impact of investments and business practices. As the global community grapples with pressing environmental and social challenges, the focus on ESG has intensified, with investors, consumers, and stakeholders increasingly scrutinizing companies’ ESG performance.
In this introductory blog post, we’ll look into basics of ESG.
1. In this series of ESG Blogs further blogs can be about:
2. The elements of an ESG report
3. Why companies are prioritizing ESG
4.Promising future prospects associated with this paradigm shift.
What is ESG?
ESG refers to a set of criteria used to evaluate a company’s performance and impact in three central areas:
Environmental: This encompasses a company’s efforts and impact on environmental sustainability, including its carbon footprint, energy efficiency, waste management, and resource conservation practices.
Social: Social factors assess how a company manages relationships with its employees, suppliers, customers, and communities. This includes issues such as labour practices, human rights, diversity and inclusion, community engagement, (know about link between ESG and community engagement) and product safety.
Governance: Governance criteria evaluate the quality and effectiveness of a company’s management structures and practices, including board diversity, executive compensation, transparency, ethics, and compliance with legal and regulatory frameworks.
