ESG is the acronym in English for " Environmental, Social, and Governance ".

 

These are criteria used to assess the environmental and social impact of an organization, being commonly applied in the context of investments, but also relevant for customers, suppliers, employees and the general public.

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Environmental: Refers to how the organization acts as a guardian of the environment, addressing issues such as climate change, greenhouse gas emissions, deforestation, biodiversity, carbon emissions, waste management and pollution.

 

Social: Assesses the organization's impact on people, culture and communities, considering diversity, inclusion, human rights and supply chains.

 

Governance: Relates to how the organization is run, including factors such as executive compensation, succession planning, board management practices, and shareholder rights.

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The importance of ESG is growing as companies are increasingly evaluated not only on their financial performance, but also on their commitment to sustainable and ethical practices.

 

Investors are adjusting their asset management strategies to reflect these considerations, seeking to ensure that the companies they invest in are accountable and transparent in their operations and impacts.