environmental, SOCIAL, GOVERNANCE
ESG is an acronym for Environmental, Social, and (Corporate) Governance. It puts a spotlight on the factors related to the sustainability of the natural environment, development of social responsibility, and regulating the standards followed by the higher authorities oforganizations. ESG bifurcates in these three forms of responsibility, taking into account as it name suggests:
- Environmental Concerns It questions if any organisation is keeping an eye out on the company’s attitude towards resources conservation, deforestation, raw materials sourcing, pollution containment, and environmentsustainability as a whole.
- Social Concerns It includes the socially regulated environment of a company in terms of how the employees specifically are being treated. This includes concerns such as fair pay, harassment, incentives, inclusive behaviours, etc.
- Governance Concerns Corporates regulate this framework of ESG in order to maintain the values which define the company’s long term sustainability and potential which is regulated by the people in the top management hierarchy which typically includes CEOs, BODs, stakeholders.