What is ESG?

ESG

Environmental, social, governance is typically used by the investment community, but the term has recently taken hold in the business community world-wide as well.

ESG stands for Environmental, Social and Governance. The next question for small and medium-sized businesses is always “How does ESG impact my business?” 

  • Environmental – this pillar is focused on how your company or business interacts with the environment. Simply said, it tackles the amount of pollution, emissions, energy-usage and damage your business has on the planet. 
  • Social – this pillar is about how your company interacts with people on Earth. It includes your workforce, human capital, how you treat them and even the community in which your business resides. 
  • Governance – this pillar explores the management of your business. It looks at things like executive pay, accounting, and just plain being ethical.

Who excels at ESG?

While many companies around the world have found that better business starts with ESG, a few stand out in the crowd. PatagoniaMicrosoftSalesforce and Invidia are all leaders in their space. While no business is perfectly good (100% environmentally or socially conscious), each strive to cause no harm to people and planet. 

You don’t have to start big. Your business can start small by implementing a couple of projects that inch you closer to being a more sustainable business. 

~ Team ThisRock