Commentary
When you hear the acronym ESG, do your eyes glaze over? If so, you’re not alone. For some, ESG represents progress. For others, however, it’s nothing but a scam. Nevertheless, the ESG movement is picking up steam, with an increasing number of corporations jumping on board.
The acronym, which stands for environmental, social, and corporate governance, evaluates how a corporation balances social goals that benefit the broader community alongside more traditional goals, like maximizing profits. To understand ESG, it helps to break the acronym down.
Environmental: Today, climate change is arguably the most hotly debated of all the hot issues. With countries striving to reduce their greenhouse gas emissions to “net-zero” by 2050, companies are assessed on their environmental impact. This includes the amount of waste and pollution they create.
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