ESG Explained

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ESG stands for Environmental, Social, and Governance. It represents a set of criteria used to evaluate a company's operations in terms of sustainability and ethical

impact. 

Source: Holding Redlich

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Environmental:

How a company performs as a steward of nature. This includes

their efforts in reducing carbon footprints, managing waste, and

utilising renewable energy sources.

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Social:

How a company manages relationships with employees,

suppliers, customers, and communities. This encompasses

labour practices, diversity, and community engagement.

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Governance:

How a company governs itself. This includes leadership,

executive pay, audits, internal controls, and shareholder rights​. 

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In summary, as stakeholders increasingly prioritise sustainable

and ethical practices, integrating ESG criteria is essential for

companies aiming to thrive in today's market​. However,

businesses should not incorporate ESG factors merely to please stakeholders but also because it represents a sound and responsible approach to operations. 

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Got questions on the topic of ESG? Feel free to contact us! 

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