ESG stands for Environmental, Social, and Governance. It's a framework that companies can use to evaluate how their practices impact the world around them.
- Environmental factors include things like a company's carbon footprint, energy usage and waste management. By measuring and managing these, companies can identify opportunities to reduce their environmental impact and operate in a more sustainable way.
- Social factors refer to a company's interactions with people, including employees, customers, suppliers, and the communities in which it operates. Companies that prioritise social responsibility seek to create a positive impact on society by promoting diversity, equity, and inclusion, supporting human rights, and giving back to their communities.
- Governance factors relate to how a company is run, including its leadership, decision-making processes, and accountability. Companies that prioritise good governance practices aim to maintain transparency, integrity, and ethical behaviour in all aspects of their operations.