ESG is the
These criteria are used to assess responsible investments regarding the company’s financial management, focusing on aspects that involve the environment, society, and corporate governance. The Environmental (E) criterion refers to numerous parameters, such as climate change, food safety, reduction of CO2 emissions, and the attempts for using fewer natural resources. Therefore, it includes all actions that aim at reducing the impact that companies have on the environment. The social (S) criterion includes all corporate decisions and initiatives that have a social impact. Specifically:
Moreover, companies can help improve people’s wellbeing through various initiatives and events. Social criteria can be observed more easily, even by people outside the organisation. Furthermore, respecting these criteria helps develop a positive image of the company. The last criterion involves corporate Governance. In particular, how much a company is committed to combating all forms of corruption and ensuring wage equity. Governance helps define to what extent the company’s sustainable actions go hand in hand with the ESG principles. These aspects help measure how companies meet the standards that are now considered necessary for their sustainable and ethical development.
Protecting the environment, caring for social justice, and managing a company ethically are significant aspects for consumers, who demand products and services that ensure and communicate social commitment while reducing their environmental impact.