What is ESG?

In today’s global landscape, there are many parameters on which a company is evaluated. Investors and consumers are now asking for increased responsibility from companies in terms of the planet and its people as a whole. This in turn has put the focus on ESG

What is ESG?

ESG stands for Environmental, Social, and Governance. It is a framework used to evaluate how a company manages risks and opportunities related to sustainability and ethics. Its a report card of the company’s non -financial performance.

🌍 1. Environmental (E)

The ‘E’ focuses on a how a company’s activities impact the natural world in terms of resource consumption, waste and contribution to climate change.

The company’s carbon emission and use of renewable energy is measured alongwith hazardous and water waste management.

Raw material sourcing is also analysed as to how sustainable it is currently.

🤝 2. Social (S)

The ‘S’ part addresses how a company treats people associated with it —its employees, customers, and suppliers.

Giving fair wages ensuring proper working conditions and having a diverse and inclusive workforce is an important part of social policy

Customers should also be ensured that their data is safe and private with the company.

3. Governance (G) ⚙️

This part refers to the company’s internal processes and leadership wherein fair inclusions, diversity, and ethical business conduct is looked into and also ensuring robust anti-corruption and anti-bribery policies.

ESG for the future

ESG factors are increasingly viewed as indicators of a company’s long-term risk and performance. Investors often use ESG criteria to screen potential investments, believing that companies with strong ESG practices are more resilient, better managed, and less likely to face costly controversies or regulatory fines.

Connect with us at sjrfoodconsultant@gmail.com to deep-dive into ESG.