How Can Responsible Business Navigate ESG?
This factsheet explores what ESG (Environmental, Social and Governance) is and how you can navigate ESG. Where it has come from and asks if it is the same as responsible business.
In its most basic form, ESG is a set of criteria which evaluates companies in areas such as:
- Environmental performance includes policies for addressing climate change, protecting nature, and lowering emissions.
- Social performance includes workplace conditions, wellbeing and diversity, and engagement with communities.
- Governance includes pay transparency, integrity in decision-making, diverse leadership, and accountability to shareholders.
Performance against these criteria is then used by investors to guide investment, divestment, and stewardship decisions.
The rapid rise of ESG ratings, as well as the relative complexity of the system and language used, can make navigating the pros and cons of ESG a minefield for CSR professionals. This factsheet/ briefing paper outlines the pros and cons of ESG and discovers if ultimately, it leads to a more responsible business.
Business in the Community’s work on climate action
By 2030 the UK needs to have delivered its commitment to limit global warming to 1.5°C, which many consider only possible by achieving a net zero carbon economy. Business in the Community (BITC) is helping organisations address climate change as part of future-proofing their business to prosper in this changing world.
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