ESG stands for Environmental, Social, and Governance. These three criteria are used to measure the authenticity of an organisation’s commitment to sustainability, unlocking a vast playing field for innovation, new collaborations, and entrepreneurship. Where sustainability before was a buzzword that could mean many things, ESG today is fact-based, relying on explicit metrics, precise parameters, and data disclosure. In other words: ESG has become a grown-up business value of substantial strategic importance, turning it into a key motivation for investors to consider new participations.

The word environmental in ESG relates to business activities and investments that contribute to preserving our natural world, including fighting climate change, reducing carbon and greenhouse gas emissions, stopping water pollution and water scarcity, and limiting air pollution and deforestation.

The social aspect examines how businesses treat their human stakeholders and communities. Social touches on gender and diversity inclusion, community relations, mental health, safety and wellbeing, and user engagement.

Governance is about how a corporation operates at the highest level, including decision-making, business processes, and ethics.