Technique 2.95 ESG

Introduction

Environment, Social and Governance (ESG) is a technique to help identify areas that need improvement and/or create a sense of urgency. Overlapping with ESG is technology.

Environment

Understanding the interaction with the physical world and covers topics like climate change, carbon emission, waste, pollution, energy efficiency, water scarcity, resource depletion, etc

Social

Understanding the interaction with different stakeholders including community, employees, officials, customers, suppliers, etc; human rights ( refugees, slavery, child labour, etc); health and safety; conflict; diversity, etc

Governance

Understanding ethical behaviour around policies, strategies, processes, etc; reward systems; bribery and corruption; Board's independence; staff's responsibilities and accountabilities.

NB Investigating how your organisation handles these issues can help your organisation improve itself and lay the foundations for change

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