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What does ESG actually stand for?

04 January 2024

ESG stands for Environmental, Social, and Governance. It is an acronym used to represent three key factors that are considered

in assessing the sustainability and ethical impact of an organization's operations.


  • Environmental (E) refers to an organization's impact on the natural environment, for example: climate policy, waste management, treatment of animals, carbon emissions, energy use.

  • Social (S): focuses on an organization's relationships with its various stakeholders (workers, suppliers, comunities), for example: human rights, equal opportunitis, freedom of association, health & safety, child abour.

  • Governance (G): pertains to the structures, processes, and policies that guide the organization's decision-making and accountability, for example: business ethics, compliance, board independence, executive compensation, shareholders democracy.


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