Social Governance ESG
Environmental, social and governance principles refer to a set of criteria that assess the strength of a company’s governance mechanisms and its capacity to effectively manage both its environmental and social impacts.
An ESG framework can help stakeholders understand how companies manage opportunities and risk around sustainability, social and governance issues.
Environmental factors include how much a company considers the environment around them such as climate change, energy performance, waste management and carbon footprint.
Social factors are determined by how a company treats people, including human rights, employee diversity and impact on the local community. Expectations in respect of social impact extends outside companies, looking at supply chain partners, labour standards and environmental considerations.
Governance focuses on how a company is led and managed. It examines a company’s ability to manage and maintain practices in order to harness organisational culture, compliance, transparency and growth initiatives.