Chapter 4 - Reporting, standards, directives and regulation
ESG is an organisational tool that companies use to measure and improve their climate and environmental impact in relation to the UN Sustainable Development Goals.
Environmental describes how an organisation manages natural resources. It analyzes how its activities affect the environment and manages environmental risks - such as resource scarcity and management, conservation of natural resources, treatment of animals, and greenhouse gas emissions.
Social (social responsibility) examines how an organisation manages its relationships with employees, suppliers, customers and the community in which it operates. This includes labor relations, operations in conflict areas, health and safety, employee relations and diversity.
Governance deals with the organisation's management, remuneration of directors, audits, internal controls and shareholder rights. It also covers issues such as executive remuneration, gender equality, bribery, corruption and board diversity.
Organisations are under increasing pressure to improve their environmental impact, demonstrate accountability, invest resources to take positive climate action and help build a more sustainable future. This includes both legal requirements and expectations from different stakeholders - from employees and customers to suppliers and partners.
-
https://finance.ec.europa.eu/publications/sustainable-finance-package-2023_en#documents