More topics

Environmental, Social and Governance (ESG)

Last updated on August 20, 2026
ESG is a framework that evaluates an organization's environmental impact, how it treats employees, partners, and communities, and the effectiveness of its governance practices

What is ESG?

ESG is a framework that:

  • Looks at organizational impacts on the environment
  • Considers the treatment of employees, partners and community members
  • Addresses the quality of governance structures

Why is ESG important?

People consider ESG when making decisions on where to live, how to invest and what to buy. ESG principles help organizations build investor, consumer and employee trust. It also contributes to the sustainability of a business. Other benefits are that ESG reduces risk and welcomes innovation. These are key elements in maintaining a strong and stable economy.