The Path to a Sustainable Future: What Is ESG?
Undeniably, any business has a more significant impact than solely what it sells. The bigger a company becomes, the more it entangles itself with the community around it. That’s where ESG can be helpful.
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ESG — short for Environmental, Social, and Governance — is a set of standards that measure a company’s impact on those three areas.
How well a corporation can integrate within the communities where it operates, while being respectful of its individuals and caring about environmental issues is essential for its success in the long run. Having high ESG ratings can also decrease risks and increase investments for a business.
Different stakeholders — investors, customers, suppliers, and employees, for example — can use ESG metrics to evaluate corporations and their sustainability, including their impact on the planet and the communities where they operate.
But what exactly is ESG? And how has it become a critical component of the investment landscape?
In this article, I’ll explain the three areas of ESG and how they can be used to create a more sustainable and socially responsible future. While also making a…
