Description
Environmental, social, and corporate governance (ESG) is a framework designed to be integrated into an organization's strategy to create a corporate value by expanding the organizational objectives. The integrated objectives are to include the identification, assessment and management of sustainability-related risks and opportunities in respect to all organizational stakeholders (including but not limited to customers, suppliers and employees) and the environment. This framework has been a hot topic in the business world. It encompasses three aspects as follows:
- Environmental aspect: focuses on preserving the natural world. Examples of topics addressed include global warming, biodiversity, deforestation, energy efficiency, water management, climate change.
- Social aspect: focuses on people and relationships include working to support gender equality, diversity, inclusion, improve employee engagement and other social related subjects.
Governance aspect: focuses on moving beyond how organizations have been typically governed in the past and enhance corporate governance Examples of specific topics include board composition, cybersecurity practices, whistle blowing practices, preventing bribery and corruption
