Do Companies Want to Be Sustainable?
Before we get into greenwashing, let’s look at what corporate sustainability is. Most companies follow environmental, social, and governance (ESG) principles.
Before we get into greenwashing, let’s look at what corporate sustainability is. Most companies follow environmental, social, and governance (ESG) principles.
Environmental = Factors like carbon emissions, deforestation, waste management or green energy initiatives help determine a corporation’s impact on the environment.
Social = commitment to diversity, fair labor standards or sexual harassment policies. Social components also include how a company facilitates change outside its walls and works for good in the greater world around them.
Governance = political contributions, diversity of board members and fairness of executive pay.
ESG research firms calculate scores on a 100-point scale based on all of the above criteria to help investors make an impact with their dollars.
