What does the term ESG stand for?

What does the term ESG stand for?

Environmental: ESG stands for Environmental, Social, and Governance. This term is used to describe a set of principles and practices that organizations use to assess their environmental, social, and corporate governance performance.

Social: ESG focuses on the social impacts of an organization’s activities and operations, including labor rights, diversity and inclusion, human rights, and community engagement. It is important to evaluate an organization’s social performance to ensure that it is meeting the needs of its stakeholders and the communities in which it operates.

Governance: ESG also focuses on the governance practices of an organization, including executive pay, board composition, and shareholder rights. Good governance practices are essential for ensuring that an organization is acting in the best interests of its stakeholders and for promoting long-term value creation.