Chapter 2 ESG I n the ever-evolving landscape of modern business, the acronym ESG has surpassed its status as a mere buzzword. It has become a guiding compass, steering companies toward sustainability, ethical practices, and long-term value creation.
This chapter explores the multifaceted dimensions of ESG and the pivotal role that EAs play in integrating its principles into a company's roadmap.
understanding ESG in the corporate ecosystem
ESG, standing for Environmental, Social, and Governance, is a framework that assesses a company's performance and impact in these three key areas. It has evolved from a niche concern to a mainstream imperative for businesses worldwide. Companies are increasingly realizing that their success is inextricably linked to their ability to address ESG issues e ff ectively. E nvironmental: The "E" in ESG encompasses a range of issues related to a company's environmental impact. This includes reducing carbon emissions, conserving natural resources, and adopting sustainable practices in their operations. Environmental considerations are no longer con fi ned to regulatory compliance but are integral to a company's reputation and future viability. Social: The "S" in ESG relates to the social aspects of a company's operations. This involves addressing issues like diversity and inclusion, labor practices, employee well- being, and community engagement. Companies that prioritize social responsibility are better positioned to attract and retain top talent while fostering positive relationships with their stakeholders.
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