The Environmental, Social and Governance (ESG) framework is used to assess the sustainability and social impact of a company. The published report makes ESG indicators measurable and comparable. ESG factors are playing an increasingly important role for investors, companies and other stakeholders, as they provide a comprehensive overview of a company’s long-term risks and opportunities. The three main components of ESG are listed below:
Environmental
- Climate change: measures to reduce greenhouse gas emissions and adapt to climate change
- Resource consumption: efficient use of resources such as water, energy and raw materials
- Waste and environmental management: handling waste, recycling and minimizing pollution
- Biodiversity: protection and conservation of biological diversity
Social
- Working conditions: Ensuring safe and fair working conditions for all employees
- Human rights: Respecting and promoting human rights along the entire supply chain
- Community and society: Involvement in and support of the communities in which the company operates
- Customer protection: Protection of the rights and interests of customers, including data protection and product safety
Governance (corporate management)
- Business ethics: promoting integrity and ethical behavior throughout the company
- Composition of the Management Board: diversity and independence on the Management Board
- Transparency: Disclosure of corporate practices and performance, including financial and non-financial information
Copyright
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Further information is available at: Creative Commons
