ESG, which stands for Environmental, Social, and Governance, is a framework where the “E” refers to environmental factors, such as a company’s impact on climate change, natural resource consumption, pollution, and waste management. The “S” represents social factors, which encompass a company’s treatment of employees, community engagement, diversity and inclusion, labor practices, and human rights considerations. The “G” pertains to governance factors, including the structure and effectiveness of a company’s board of directors, executive compensation, shareholder rights, transparency, and adherence to ethical business practices.
ESG considerations have become increasingly important for investors, stakeholders, and organisations themselves, as they recognize the long-term benefits of sustainable and responsible business practices. By integrating ESG principles into their strategies, organisations aim to mitigate risks, enhance their reputation as an employer, attract investment, and contribute positively to society and the environment.
