Environmental Social and Corporate Governance
Environmental social and corporate governance (ESG) is a fancy way of saying that people who run big companies should try to do things that are good for the Earth and the people who live on it.
Imagine you and your friends are playing together and you have a big jar of cookies. You are in charge of the cookies and you have to make sure that everyone gets a fair share. You also have to make sure that you don't take too many cookies and leave none for your friends. This is called responsibility.
Companies are like you with the jar of cookies. They have to make sure that they use the Earth's resources wisely and fairly, so there are enough for everyone not just today, but for many years to come. They also have to be responsible for how they treat people who work for them, how they affect communities around them, and how they make products or offer services to customers.
The "E" in ESG stands for Environmental and means that companies should do things that are good for the Earth, like using less energy and water, protecting wildlife and habitats, and reducing pollution.
The "S" in ESG stands for Social and means that companies should treat their employees, customers, and communities they operate in fairly and responsibly. This includes things like respecting human rights, promoting diversity and inclusion, and supporting local charities and good causes.
The "G" in ESG stands for Governance and means that companies should be well-managed and transparent, so that everyone knows what they are doing. Good governance also means that companies should have strong values and ethics and be accountable to their investors and stakeholders.
So in a nutshell, ESG means that companies should try to be good, responsible, and fair to everyone and everything they interact with. This includes people, animals, and the planet we all share.
Imagine you and your friends are playing together and you have a big jar of cookies. You are in charge of the cookies and you have to make sure that everyone gets a fair share. You also have to make sure that you don't take too many cookies and leave none for your friends. This is called responsibility.
Companies are like you with the jar of cookies. They have to make sure that they use the Earth's resources wisely and fairly, so there are enough for everyone not just today, but for many years to come. They also have to be responsible for how they treat people who work for them, how they affect communities around them, and how they make products or offer services to customers.
The "E" in ESG stands for Environmental and means that companies should do things that are good for the Earth, like using less energy and water, protecting wildlife and habitats, and reducing pollution.
The "S" in ESG stands for Social and means that companies should treat their employees, customers, and communities they operate in fairly and responsibly. This includes things like respecting human rights, promoting diversity and inclusion, and supporting local charities and good causes.
The "G" in ESG stands for Governance and means that companies should be well-managed and transparent, so that everyone knows what they are doing. Good governance also means that companies should have strong values and ethics and be accountable to their investors and stakeholders.
So in a nutshell, ESG means that companies should try to be good, responsible, and fair to everyone and everything they interact with. This includes people, animals, and the planet we all share.