ESG is an acronym that refers to three areas of social and environmental responsibility: Environmental, Social, and Governance.

The ESG concept is often used to evaluate the performance of companies in terms of sustainable development. The objective is to measure their environmental and social impact, as well as the quality of their corporate governance.

The “Environmental” component of ESG concerns the environmental impacts of a company’s activities, such as water management, greenhouse gas emissions, waste management, etc.

“Social” refers to the social impact of a company’s activities, including respect for human rights, diversity and inclusion, working conditions, health and safety, and relations with local communities.

The “Governance” component focuses on how a company is managed, including transparency practices, ethical policies, board accountability, executive compensation and risk management.