What is ESG?
Back Wat wil ESG zeggen? In today’s world, there is growing awareness of sustainability and responsible business practices. This growth is accompanied by an increasing number of acronyms, such as CSRD, VSME, ESRS and, perhaps most importantly of all, ESG. But what exactly does ESG mean? ESG: a broad concept for sustainability ESG is an umbrella term that approaches sustainability from a broad perspective. While sustainability is often associated with environmental issues such as climate change and renewable energy, ESG encompasses more than just ecological issues. It also covers social responsibility and good governance. In other words, ESG helps companies to strategically integrate sustainability into their entire business operations. Environmental: This includes a company’s ecological impact, such as energy consumption, waste management, CO2 emissions and the use of renewable resources. Social: This looks at how a company treats people, including employees, customers and the wider community. Think of working conditions, diversity, inclusion and social engagement. Governance: This refers to the company’s structure and leadership. Are decisions transparent? How is corruption prevented? Are ethical standards followed? The origins of ESG and the 10 ESG principles ESG has its origins in global efforts to promote sustainable development, particularly in the 17 Sustainable Development Goals (SDGs) of the United Nations. These goals, introduced in 2015, were established as a shared vision to address challenges such as poverty, social inequality and climate change. The SDGs serve as an international guideline for governments, companies and organisations to make a positive impact on people, the environment and the economy. To better guide companies in integrating sustainable practices, the SDGs have been translated into 10 core principles that specifically align with ESG factors. These principles provide companies with a concrete framework for embedding sustainability and responsible business practices in their strategies. The 10 ESG principles focus on four key areas: environmental management (E), human rights and working conditions (S), and anti-corruption (G). They help companies give direction to their sustainability efforts and ensure compliance with ethical standards. Environment Organisations should take proactive measures against environmental problems and risks. Responsibility for environmental impact must be central to business operations. The development and application of sustainable technologies must be promoted. Human rights Companies must ensure that they recognise and support universal human rights. Activities that violate human rights must be avoided entirely. Working conditions The right to form trade unions and engage in collective bargaining must be guaranteed. All forms of forced or compulsory labour must be eliminated. Child labour must not be permitted under any circumstances. Discrimination in employment or occupation must be prevented. Anti-corruption Companies must actively oppose all forms of corruption, including bribery and extortion. ESG strategy and reporting Integrating ESG into your business starts with creating support and engagement at all levels of the organisation. The ESG framework provides a common language for strategically embedding sustainability. The first step is to determine the relevant ESG themes through a double materiality analysis. From this, you develop a targeted strategy with clear goals and concrete actions. Finally, you ensure transparency by reporting. Would you like help with this process? Get in touch with us! Elke Thurman Sustainability analyst Contact Elke