ESG which is derived from a more familiar concept of CSR (Corporate Social Responsibility), stands for Environmental, Social, and Governance. Its philosophy is that companies should take into account ESG issues when delivering financial value to their stakeholders which is characterized by sustainable, responsible and ethical investments.
Companies are increasingly required by regulators to make disclosures of ESG metrics in their Annual Report or in a standalone Sustainability Report.
What are ESG factors?
ESG factors are applicable to all industries and organizations in one way or another. They are numerous, interlinked and ever-shifting which include: