The ‘G’ in ESG stands for governance. Governance refers to the way a company is managed – whether the company follows principles of transparency, accountability, independence, fairness and good governance.
The ‘S’ in ESG stands for social and takes into account the manner in which a company manages its stakeholders. That is, how does the company choose, interact and manage its relationships with its suppliers, vendors, distributors, customers, employees and society in general.
The ‘E’ in ESG that stands for environment is, perhaps, its most well-known factor. There is a fair amount of awareness among the general population about the impact of a company or an industry’s operations, products and services on the environment.
An acronym for Environment, Social and Governance, ESG factors are a set of standards increasingly used by responsible investors to evaluate potential investments. These factors are not a part of traditional valuation or decision making processes but may still have