ESG stands for Environmental, Social, and Governance, representing a stakeholder-centric approach to doing business.
Companies that adhere to ESG standards agree to conduct themselves ethically in those 3 areas, and can draw on a range of strategies, tactics, and ESG solutions.
An ESG framework guides the direction of ESG reporting, while ESG standards dictate how information and data are collected, ensuring comparable, consistent, and reliable disclosure.
ESG criteria measure the ethical impact and overall sustainability of an organization, benefiting society and diverse stakeholders.
Environmental factors refer to an organization's environmental impact and risk management practices. For example, we could consider a company's role in:
🌱 Air pollution
🌱 Climate change
🌱 Energy efficiency
🌱 Waste management
🌱 Greenhouse gas emissions
🌱 Carbon emission reduction
🌱 Biodiversity protection and loss
🌱 Water pollution and water scarcity
The social pillar is linked to relationships with stakeholders. Examples would be:
👉 Mental health
👉 Human Rights
👉 Labor Standards
👉 Community relations
👉 Customer satisfaction
👉 Employee engagement
👉 Data protection and privacy
👉 Gender and diversity inclusion
In turn, corporate governance refers to how an organization is led and managed.
📖 Board composition
📖 Company leadership
📖 Bribery and corruption
📖 Whistleblower schemes
📖 Audit committee structure
📖 Venture partner compensation
📖 Political contributions and lobbying
📖 Executive compensation guidelines
📖 Hiring and onboarding best practices
Compliance with ESG standards benefit society and stakeholders, while helping your organization managing risks and opportunities created by ever-changing conditions.
For your ESG compliance training, Serapy helps you through tailor-made, online gamified trainings based on real-life, expert-verified cases. Get your demo.