What
What is ESG?
ESG stands for Environmental, Social, and Governance. ESG principles are rooted in sustainability and closely aligned with the United Nations Sustainable Development Goals (SDGs).
The Environmental dimension covers areas such as pollution reduction and waste management. The Social dimension addresses labor rights, employee welfare, and community engagement. The Governance dimension focuses on operational integrity, effective oversight, and regulatory compliance.
Given the broad scope of ESG, many organizations begin their ESG journey with the Environmental dimension — such as establishing a comprehensive hazardous substance management system, ensuring electronic products meet WEEE compliance requirements, conducting greenhouse gas inventories, and assessing product carbon footprints.
ESG
How is ESG different from CSR and SDGs?
When people talk about ESG, CSR is often mentioned as well.
CSR (Corporate Social Responsibility) as defined by the World Business Council for Sustainable Development (WBCSD), reflects a company's commitment to ethical economic development and enhancing the quality of life for employees, local communities, and society at large.
While CSR defines the broader vision of corporate responsibility, ESG provides the measurable framework through which these commitments are put into practice.
The Sustainable Development Goals (SDGs) were established by the United Nations in 2015. Comprising 17 goals and 169 targets, the SDGs provide a shared blueprint for governments, businesses, and individuals to collectively advance sustainable development.
ESG is the measurable framework that evaluates corporate sustainability and a key benchmark for investment decision-making, offering a structured, quantifiable means of operationalizing CSR commitments. By integrating ESG with the SDGs companies can enhance their operational sustainability and generate significant social impact.