ESG stands for Environmental, Social and Governance. The term is used to describe three key areas that businesses and investors consider when assessing the sustainability and ethical impact of investments.
Environmental: This component looks at the environmental impact of the business.
Greenhouse gas emissions
Use of natural resources
Waste management
Energy efficiency
Impact on biodiversity
Social: This component focuses on the social aspects and impacts of the business.
Working conditions and safety at work
Diversity and inclusion in the workplace
Relations with communities
Protection of human rights
Customer access and satisfaction
Governance: this component focuses on how the company is managed and governed.
The structure and composition of the Board of Directors
Transparency and ethical behaviour
Anti-corruption measures
Executive remuneration
Corporate policies and internal controls
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