What is ESG?

QuestionsCategory: BRSRWhat is ESG?
Mayuresh Jhadhav asked 2 months ago
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What is ESG?
Learn about ESG - its definition, components, importance & how ESG factors are used to evaluate the long-term sustainability of companies.
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Team GreenSutra® Staff answered 2 months ago

ESG stands for Environmental, Social, and Governance.

It is a set of criteria used to evaluate a company’s performance in these three areas.

  1. Environmental criteria assess a company’s impact on the environment and natural resources.
  2. Social criteria evaluate the company’s impact on society and its stakeholders, including employees, customers, and local communities.
  3. Governance criteria focus on the company’s internal controls, ethics, and transparency.

ESG factors are increasingly used to evaluate the long-term sustainability of companies and inform investment decisions.