Why Is ESG Important? 5 Benefits of ESG
Whether yours is a startup or a flourishing business, if you are keen on diversifying your financial portfolio to ensure success, you should definitely catch hold of the trending, sustainable investment strategy, called ESG. Let’s accept that a business's success not only depends on its innovative offerings but also on the way it operates - with regard to the environment, social and governance. Interestingly, consumers are not driven towards companies that treat the environment, employees or the community in which they operate poorly, according to a study conducted by PwC. It states that 76% of consumers will stop buying from such companies. Now, what is this ESG all about? Does it really have any benefit? Let’s explore the importance of ESG in this post.
What is ESG?
ESG is the acronym for Environmental, Social and Governance (ESG). ESG is a reporting framework, and one of the critical, non-financial factors that are used for assessing the company’s performance. It is about how an organization creates an impact on environmental factors such as carbon footprint, water usage, waste management, air pollution, etc, social factors like diversity, human rights, safety at workplace, and the corporate governing factors such as shareholders rights, anti-corruption, transparency, diversity of board members, audits, internal controls, and other corporate and political contributions.