Environmental, Social & Governance.
ESG stands for Environmental, Social and Governance. ESG also stands for seeking a healthy balance between financial economic results, transparency, social interests and the environment without losing the balance between them. Contrary to popular belief, that balance has been shown to lead to better outcomes for both the company and society. A sustainable ESG approach appears to make a positive social contribution, not only to profit, but also to people and planet.
The 3 ESG criteria
The environmental criteria examine how an organisation contributes to and performs in relation to environmental challenges (e.g. waste, pollution, carbon footprint, energy consumption, ).
The social criteria look at how an organisation treats its people (e.g. human capital management, diversity and equal opportunities, working conditions, health and safety and misleading selling).
The governance criteria chart how a company is managed (e.g. executive pay, tax practices and strategy, ethics and integrity, broad diversity and structure, corporate governance).
