What is ESG?
ESG stands for Environmental, Social and Governance issues, which underpin the sustainability, ethical operations and financial performance of an organization. ESG reporting by companies provides data on how their operations influence environmental, social and corporate governance areas. ESG reports are used by potential social conscious investors to screen for beneficial and ethical investments.
ESG factors cover several topics that underpin all organizations and industries, some of the wide scope issues include:
The environment is affected by global production processes and consumption, which contribute to environmental concerns such as:
- Climate change
- Waste and pollution
- Water and energy efficiency
- Resource depletion
- Greenhouse gas (GHG) emissions