Environmental, social and governance (ESG) is a framework used to evaluate an organization’s impact on the world and its commitment to sustainable and ethical practices. ESG criteria are increasingly used by investors, stakeholders and businesses to assess a company’s long-term value, risk profile and alignment with sustainability goals. 

Key Components of ESG: 

• Environmental: Focuses on a company’s impact on the environment and its efforts to address environmental challenges. Key factors include carbon emissions and energy efficiency, resource usage, and waste management and pollution control. 

• Social: Examines how a company manages relationships with its employees, customers, suppliers and the broader community. Key factors include employee well-being, community engagement and social impact, and customer satisfaction. 

• Governance: Evaluates the company’s leadership, transparency and ethical decision-making. Key factors include board structure, executive compensation and accountability, and corporate transparency. 

Related Content: 

• Cultivating ESG Culture: eLearning as a Catalyst for Change
• The Role of L&D in Bridging the ESG Divide
• The Best Starting Point for an Effective ESG Program? Training.