ESG is the abbreviation of the three main axes, environmental protection (E, Environmental), social responsibility (S, Social) and corporate governance (G, governance). It is a new type of data and indicators for evaluating companies. ESG represents corporate social responsibility. Many countries, companies or investors will use ESG as a scoring standard. It is regarded as an important indicator and investment decision to evaluate whether a company is sustainable.
  • ENVIRONMENTAL It represents the need for enterprises to pay attention to environmental sustainability issues, covering greenhouse gas emissions, carbon emission reduction, climate change, environmental sustainability, carbon emissions, pollution treatment, etc.
  • Social Responsibility (SOCIAL) Covers how companies manage their employees, working environment, information security, customers, suppliers, etc.
  • GOVERNANCE Covering issues such as company senior management, executive compensation, auditing, internal control, shareholder rights, corporate ethics, information transparency, corporate compliance, etc.
  • ESG can be like a company's health inspection report. It evaluates the company's internal and external aspects and evaluates a company's overall performance. It not only needs to have outstanding financial performance and take good care of its employees and shareholders, but also It is also necessary to assume more social responsibilities. The scale of the enterprise not only needs to be enlarged, but also to achieve sustainable operation in the long term.

What is the difference between ESG and CSR

CSR means corporate social responsibility (CSR, corporate social Responsibility is a broad concept proposed by the United Nations in 1999. It mainly talks about how companies should take into account ethics, improve employees, and the quality of social life while making profits. We can think of the relationship between ESG and CSR as CSR is our broad sustainability goal, while ESG is about how to practice the principles of CSR and evaluate the sustainable development status of enterprises from the three aspects of environment, society, and corporate governance.
Nowadays, sustainable development has become a major direction pursued by enterprises. CSR is the main concept of sustainable development of enterprises. ESG is the spirit of practicing CSR and is used to evaluate the indicators of sustainable development of enterprises.

Why do companies start to pay attention to ESG sustainability?

Recently, due to the epidemic, global climate change, rising sea levels and other phenomena, people have begun to think about how to coexist with the natural environment. At the same time, management companies are also thinking about how to protect the earth and achieve sustainable operations while growing revenue. Due to the epidemic and natural disasters, the supply chains of many brands have been disrupted, affecting company revenue. Coupled with the rise of online communities, every move of a company is scrutinized. Any inappropriate behavior will be quickly spread and affect the reputation of the company. Now companies must learn to In the ever-changing business environment, how to implement ESG and reduce the impact of risks. Large companies have begun to disclose ESG-related information. ESG data is not only a static score, but also a dynamic display. Enterprises must disclose not only past financial performance, but also achieve sustainable management with ESG goals.