ESG (Environmental, Social, and Governance) is a framework to evaluate a company's sustainability, transparency, and ethical impact. Companies adopt ESG to enhance corporate responsibility, attract investors, and align with global sustainability standards.

The three key criteria are:

Environment

This element evaluates a company's efforts to reduce carbon emissions, conserve resources, and address climate change.

Social

This dimension examines how a company interacts with employees, customers, and communities.

Governance

This aspect evaluates a company’s leadership, board structure, and management practices.

ESG is crucial because failing to implement it can lead to serious disruptions.

INTERNATIONAL POLICIES

Stricter global regulations can lead to trade restrictions or fines for non-compliant businesses.

STAKEHOLDER PRESSURE

Investors, employees, and partners increasingly expect companies to follow ESG practices.

RISING CUSTOMER EXPECTATIONS

Consumers prefer eco-friendly and ethically produced products.