What is ESG?

ESG (Environmental, Social and Governance) is where companies use these three pillars to access the sustainability of the business. It’s an opportunity for businesses to gain a competitive advantage and contribute to solving the greatest global challenge for all of us now and generations to come.




These factors comes under pollution, greenhouse gas emissions, waste generation, energy efficiency and the impact on biodiversity. 


These  factors include attitudes to diversity and labour standards at a company’s main operating centers and in its supply chains, along with more routine issues such as workplace health and safety. 


These factors cover how well a company is managed, from boardroom diversity and gender equality, to being free from corrupt practices.


Benefits of ESG

Consumers and business customers who factor ESG considerations into their buying decisions are likely to seek out products or services provided by companies that are focused on ESG.

Organizations with ESG initiatives tend to focus on a wide range of environmental issues and ethical practices. For example, ESG aligns with the triple bottom line, a sustainability-focused accounting framework that companies can use to measure the overall economic value they create and their social and environmental impact.

It can increase employee enthusiasm and upturn overall productivity by giving workers a sense of purpose.

EU’s Corporate Sustainability Reporting Directive

This report went into force in January of this year. Eventually, it will require 50,000 companies to file annual reports on their business risks and opportunities related to social and environmental issues and how their operations affect people and the environment.