ESG
ESG stands for Environmental, Social, and Governance. Based on these
three criteria, companies are evaluated according to social and
ecological aspects and responsible corporate governance.
Environmental: For environmental aspects, the strategy for
climate protection, careful resource management, the use of
renewable energy, and the minimization of greenhouse gas emissions
play an important role.
Social: Companies are committed to creating fair working
conditions, protecting health and safety in the workplace, and
respecting human rights and diversity.
Governance: Corporate governance focuses on aspects related
to corporate values and control processes, such as the exclusion of
corruption and anti-competitive behavior.
ESG criteria are reviewed and assessed by rating agencies to ensure
that companies maintain these standards.
Do you find the explanation helpful?