What does ESG mean?
Environmental
The Environmental pillar focuses on how businesses interact with and impact the planet. It addresses critical areas such as resource efficiency, carbon emissions, climate change, and biodiversity. Prioritizing environmental responsibility helps companies reduce their ecological footprint, align with sustainability goals, and comply with evolving regulations while fostering innovation and resilience in the face of global environmental challenges.
Social
The Social pillar emphasizes the human element, covering aspects such as employee well-being, diversity and inclusion, community engagement, and supply chain responsibility. By fostering strong social practices, businesses can enhance workplace culture, build trust with stakeholders, and create positive societal impacts. This focus not only strengthens relationships but also drives long-term success by addressing the expectations of a socially conscious world.
Governance
The Governance pillar ensures accountability, transparency, and ethical decision-making. It encompasses practices such as board diversity, executive accountability, anti-corruption measures, and compliance with legal frameworks. Strong governance structures safeguard against risks, foster investor confidence, and create a foundation for sustainable growth by aligning business operations with integrity and ethical standards.
Environmental, Social, and Governance (ESG) principles are crucial for driving sustainable and responsible business practices in today’s world. By addressing environmental impacts, fostering social responsibility, and ensuring robust governance, ESG enables organizations to build long-term value, mitigate risks, and meet the rising expectations of stakeholders, including investors, customers, and regulators. Embracing ESG not only enhances reputation and competitiveness but also contributes to global sustainability goals, ensuring a positive impact on society and the environment.
ESG in numbers
1
Environmental
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Companies with strong ESG practices can reduce carbon emissions by up to 20%, contributing significantly to global climate goals.
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Sustainable business practices could unlock up to $12 trillion in market opportunities annually by 2030.
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A study shows that 60% of consumers prefer brands that are committed to reducing their environmental impact.
2
Social
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Organizations with diverse teams are 21% more likely to outperform their peers financially.
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Nearly 80% of employees consider a company’s social responsibility practices when choosing where to work.
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Companies actively investing in social initiatives see brand loyalty increase by 28%.
3
Governance
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Businesses with strong governance are 15% less likely to experience major corporate scandals or failures.
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75% of institutional investors consider ESG performance as a key factor in decision-making.
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Companies with transparent governance structures report 35% higher shareholder satisfaction rates.