ESG stands for environmental, social, and governance, and it denotes the three topic areas that organizations typically report on to their stakeholders:
- Environmental: What is the impact of business operations on the natural world? How are environmental risks and compliance addressed?
- Social: What is the impact of business operations on society? How are stakeholder needs and interests met?
- Governance: How are internal controls for decision-making and business operations structured? How is ethical, sustainable, transparent behavior governed, measured, and reported on?
These ESG topics, or metrics, are also important to investors as they represent inherent risk and opportunity for long-term value creation: several studies have pointed to a tangible link between ESG and financial performance and 81% of sustainable indices are outperforming their peer benchmarks. In fact, the modern ESG model was created as a way for socially conscious investors to screen potential investments. Dive into our resource to gain insight into the ESG pillars and map your ESG metrics to the United Nations Sustainable Development Goals (UN SDGs).
- What each ESG pillar stands for and common metrics
- Why they are important
- How businesses can map their ESG impacts to SDGs
- And include impacts in their ESG reporting!