The letter “E” (Environment) refers to environmental issues and how the company relates to these: greenhouse and climate change gas emissions, energy efficiency, natural resources and biodiversity, and waste management. 

 

The scope of the “S” (Social) includes for example issues such as management of employee relations, diversity, equity and inclusion policies, safety in the workplace, relations with local communities and responsibility towards clients.

 

Finally, the “G” of Governance concerns the structure and management of the company. For example, the transparency of corporate decisions and choices, remuneration policies, relations with suppliers, and risk management.

 

ESG factors and especially their assessment and continuous monitoring allow companies to gain greater awareness of their impacts and identify action to manage them over time. In this way they also become more competitive and resilient.