If you're a business owner or decision maker, you've probably heard a lot of "ESG" lately. But what is ESG and why is it so important? This post will give you a crash course on everything ESG related, from what it means to how it can benefit your business. Eventually, you will have a better understanding of this important topic and how it can affect your bottom line.
What is ESG?
ESG is the acronym for environmental, social and governance. Collectively, these three pillars make up a company's overall sustainability performance. To be considered sustainable, a company must have policies and practices that protect and improve the environment, support social justice initiatives, and are governed responsibly. In essence, ESG means operating with integrity and creating value for all stakeholders, not just shareholders.
Why is ESG important?
There are a few reasons why ESG has become such an important topic in recent years. First, there has been a shift in public opinion when it comes to sustainability. More and more people are aware of the environmental and social impact of business decisions and are asking companies to answer for their actions. This change has led to an increase in demand for sustainable products and services.