• What is ESG?
ESG is a subset of non-financial performance indicators which are used to assess sustainability commitments of a firm.
E – Environmental aspect: indicates how firms use their energy and manage their environmental impacts of business activities along the value chain.
S – Social aspect: emphasizes on stakeholder value creation. Taking care of employees, clients, and communities’ well-being, creating a fair and safe workplace, and having a respectful supply chain process are some examples of social part of the ESG framework.
G – Governance aspect: includes the system of controls, practices, and procedures to govern and make effective decisions, ensure transparency, business ethics, and regulative compliance.