What is ESG?
Environmental, Social and Governance, or ESG, are the three
pillars of performance by which a business' impact on society
and the environment, can be evaluated. ESG, in a business context,
is about a company's culture, operations and business model.
More specifically, it is about how a company, and its products and
services contribute to greener, socially-just, and more transparent
world. By understanding a company's strategy and successes in
each pillar, stakeholders, such as investors, employees, consumers
and governments/regulators can decide how they interact with an
organization.
Investors, activists and regulators are demanding proactive,
employee engagement, community-level commitments and accountability
to address important sustainable topics such as climate change,
social injustice, and inequality. Accordingly, ESG is one of the
defining challenges for businesses across the globe for the 21st
century.
