ESG (Environmental, Social, Governance)
"By focusing on ESG principles, companies can enhance their reputation, build trust with consumers, and attract forward-thinking investors as well as improve their financial performance through impact marketing."
Definition
A comprehensive framework used to evaluate a company's commitment to sustainable and ethical practices. ESG encompasses three key areas: Environmental factors, such as a company's carbon footprint, resource usage, and environmental stewardship; Social factors, including employee relations, community involvement, and human rights; and Governance factors, which assess corporate leadership, transparency, ethical behavior, and stakeholder engagement. ESG criteria help stakeholders understand and evaluate a company's long-term sustainability and ethical impact on the world, guiding investment and operational decisions.
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