What does ESG stand for?

ESG is a concept that addresses three key areas of companies’ operations: environment (E), society (S) and corporate governance (G). Companies that integrate ESG into their strategies aim to minimize negative environmental impacts, support responsible social practices and ensure transparent governance. The environmental area focuses on conservation and sustainability issues. The social area deals with labor rights, equality, and relations with local communities. Corporate governance, on the other hand, is a system of policies, procedures and structures that govern a company’s management, ensuring transparency and accountability in decision-making. Effective corporate governance ensures that the interests of various stakeholder groups, including shareholders, employees and customers, are adequately represented and protected.