What does ESG stand for in business?

ESG stands for Environmental, Social, and Governance.

  • Environmental: This refers to an organisation’s impact on the planet, including factors like carbon emissions, resource usage, and environmental conservation efforts.
  • Social: This pertains to an organisation’s impact on people, encompassing its interactions with employees, customers, communities, and broader societal welfare.
  • Governance: This concerns how an organisation is governed and managed, focusing on aspects like transparency, ethics, and accountability.

ESG takes a holistic view of sustainability, recognising that it extends beyond just environmental concerns to include social and governance factors.