An ESG strategy is a business approach that integrates environmental, social, and governance factors into the Company’s operations, decision-making processes, and overall strategy.
ESG is closely related to business sustainability and Corporate Social Responsibility (CSR), two other concepts that look beyond standard profit-and-loss calculations. But there are clear differences between the three concepts. Business sustainability focuses more broadly on positioning a company for ongoing success through responsible management practices and business strategies, while CSR is a self-regulating approach to taking actions that have societal benefits. By comparison, ESG is a formalized strategy that includes measurable goals and processes for tracking, managing and reporting on them.
