ESG refers to environmental, social, and governance factors considered by companies when managing their operations, and investors when making investments, in respect of the risks, impacts, and opportunities. The word ESG was coined in 2004 in a report prepared by the United Nations Global Compact and the Swiss Federal Department of Foreign Affairs. ESG has gained increasing attention in the last few years (mainly after the Covid-19 pandemic) with many investors investing only in those companies that provide ESG performance reporting. It has highlighted the need for a more sustainable approach for companies to build their ESG performance to manage risks and build resilience. ESG may include the following issues but is not limited to.
- Environmental issues: potential or actual changes to the physical or natural environment (e.g. pollution, biodiversity impacts, carbon emissions, climate change, natural resource use);
- Social issues: potential or actual changes in surrounding community and workers (e.g. health and safety, supply chain, diversity, and inclusion); and
- Governance: corporate governance structures and processes by which companies are directed and controlled (e.g. board structure and diversity, ethical conduct, risk management, disclosure, and transparency), including the governance of key environmental and social policies and procedures.
We, Corpseed professionals, can assist your organizations in achieving ESG goals. We work with you to create & sustain long-term value and manage the risks & opportunities to build a resilient business. Good ESG practices help in better management of risks to businesses, communities, and the environment. They also help companies boost their reputation, reduce costs, and strengthen stakeholder relations.