ESG: What is it? Discover the acronym worth 1 trillion dollars

shikapatho

Concepts such as sustainable investing and impact investing are not new, but for a long time they were approached without a clear methodology, a gap filled in recent years thanks to discussions about ESG .


These three letters are revolutionizing the way investments are thought around the world, guiding well-defined criteria so that companies can drive – and demonstrate – positive transformations in society.

You can be sure: you will hear more and more about ESG . In today's article, we have prepared a guide to understand this idea, and why, after all, it has the potential to define where trillions of dollars will be invested in the coming years!

ESG is an acronym that, in English, stands for Environmental , Social and Governance . These are  whatsapp database three aspects that are increasingly valued by companies, consumers and investors around the world, guiding practices that balance profitability and sustainable development .

In the environmental sphere , companies must reduce negative impacts by investing in renewable resources, correctly managing their waste, avoiding the use of chemical pollutants, and so on.




The fields that receive the most attention today are carbon emissions and the depletion of water resources, but some companies can also take initiatives in areas such as biodiversity, deforestation, and so on.

Social initiatives focus on the company's interest in all those with whom it interacts: employees, consumers, suppliers and society as a whole, in addition, of course, to shareholders and executives.

Promoting diversity in your teams, fully respecting human rights and labor laws, working for customer satisfaction and protecting customer data are among the activities that allow for a good evaluation in criterion S.

The sphere of governance , in turn, concerns the way in which a company's management is composed and treated: how its board is formed, what the audit processes are, how executives are rewarded, ease of reporting and agility to investigate bad things. practices internally, etc.