What is ESG and why is it important?

ESG is an acronym for ‘environmental, social, and governance’. Many socially conscious investors leverage ESG reports to screen an enterprise’s operations for potential investment purposes.

The environmental criterion considers a business’s efforts toward nature while the social criterion considers the relationship between a company and its employees, customer, and the community. Finally, the governance criterion concerns itself with an organization’s leadership, internal control, pay, and audits.

For an enterprise to meet its bottom line and achieve net-zero, demonstrating its ESG performance is crucial.