What is ESG

ESG stands for Environmental, Social, and Governance. In order to identify material risks and growth opportunities, investors increasingly consider these non-financial factors as part of their analysis process. Environment, Social, and Corporate Governance measure the corporate conscientiousness of a firm with respect to social and environmental concerns. Investors who are socially conscious often screen potential investments based on environmental, social, and governance criteria (ESG). Criteria related to the environment include how a company practices stewardship of the environment. An organization’s social criteria are determined by how it manages its relationships with employees, suppliers, customers, and community members. An organization’s governance division deals with issues such as leadership, executive compensation, audits, internal controls, and shareholder rights.

Nature is not subject to our authority, but rather we are stewards of it

In light of recent events, the importance of ESG has grown significantly: companies have the responsibility and the ability to promote positive environmental impacts, build a more sustainable and resilient future, and “put their money where their mouth is”. A company’s environmental, social, and governance obligations are not confined to financial institutions and investors; it also affects its employees, regulators, and everyone involved in the operation