ESG: Definition
ESG, which stands for “environmental, social, and governance”, represents a stakeholder-focused approach to business. It operates on the principle that sustainability encompasses more than just environmental considerations. As ESG gains prominence among directors, it’s vital to consider the unique global factors that influence regional priorities. Companies adhering to ESG standards commit to ethical conduct in these three areas and can leverage a variety of strategies, tactics, and ESG solutions.
For Sustainability Managers
Understanding ESG helps you select the right frameworks and meet evolving disclosure requirements.
For CFOs
ESG shapes mandatory reporting obligations that carry financial and legal consequences for non-compliance.
For Sustainability Reporting
ESG sets the methodological foundation your sustainability reports must align with.
Related Terms
ESG Reporting
An ESG report is a document released by a company detailing its impact on environmental, social, and governance aspects.
ACCC
The Australian Competition & Consumer Commission (ACCC) serves as Australia's national regulator overseeing competition, consumer protection, fair trade, and product safety.
ASIC
The Australian Securities and Investments Commission (ASIC) serves as Australia's unified regulator for corporate affairs, financial markets, financial services, and consumer credit.
Circular economy
The circular economy model entails sharing, leasing, reusing, repairing, refurbishing, and recycling products and materials to extend their lifecycle.
CSR
Corporate Social Responsibility (CSR) comprises policies implemented by a company to positively impact the world.