What is ESG? Why ESG is becoming a trend throughout the world?
2024-04-18
ESG stands for Environmental, Social, and Governance, and it's a set of criteria used to evaluate a company's performance in these topics. We've got a brief overview of each topic:
Environmental (E), focuses on how a company performs as a steward of the natural environment. It includes aspects such as carbon emissions, resource depletion, waste management, pollution, and environmental risks.
Social (S), looks at how a company manages its relationships with employees, suppliers, customers, and the communities where it operates. It includes aspects such as labor practices, human rights, diversity and inclusion, health and safety, and community engagement.
Governance (G) represents the system of rules, practices, and processes by which a company is directed and controlled. It includes aspects such as board diversity, executive compensation, transparency, ethics, and shareholder rights.
ESG criteria are used by investors to assess the sustainability and ethical impact of an investment in a company. Companies that perform well on ESG criteria are often seen as more sustainable and better managed, which can lead to long-term financial outperformance.
ESG considerations are becoming increasingly important for investors, regulators, and consumers as they seek to align their investments and consumption choices with their values and sustainability goals.
Pack Leader recognizes the importance of ESG factors and are incorporating them into our business strategies to improve our sustainability and competitiveness.