What is ESG?

Here's how ESG embraces environmental, social and governance elements within a business...

• Environmental: This aspect evaluates a company's impact on the environment, including its carbon footprint, waste management, resource utilisation, and commitment to sustainable practices. Businesses are increasingly under scrutiny to reduce their ecological footprint and transition towards renewable energy sources, as concerns about climate change escalate.
   
• Social: The social dimension encompasses a company's relationships with its employees, customers, communities, and broader society. Factors like labour practices, employee diversity and wellbeing, customer privacy, community engagement, and product safety fall under this category. A strong social stance contributes not only to positive public perception but also to employee satisfaction and overall business resilience.
   
• Governance: Governance addresses a company's internal structures, policies, and practices. This includes matters such as board composition, executive compensation, transparency, ethics, and adherence to regulatory standards. Strong governance ensures that businesses operate with integrity and accountability, fostering trust among stakeholders.