ESG stands for Environmental, Social, Governance

It is a set of criteria that measure a company or organization's impact and management of environmental, social and governance engagement. The ESG criteria can vary depending on the industry, sector and market, but some of the typical examples are:

Environmental

Here, however, we look at how the company or organization affects and protects the environment, e.g. by reducing greenhouse gas emissions, saving energy and water, recycling and managing waste, and promoting biodiversity and ecosystems.

Social

Here, however, you look at how the company or organization treats its employees and engages with customers, suppliers and local communities, e.g. by ensuring fair pay and working conditions, promoting diversity and inclusion and respecting human rights.

Governance

Here you look at how the company or organization is led and managed, e.g. by having a clear and ethical vision and mission, ensuring good and transparent reporting, auditing, and complying with legislation and regulations.

The ESG criteria were previously mostly used by investors

But it is now used by investors as well as customers, suppliers and other of the company's stakeholders to understand companies' social, environmental and other societal impacts.

You can read more on the page PWC Global