What is ESG Framework ?
ESG frameworks are structured guidelines that help organizations assess and report on their Environmental, Social, and Governance (ESG) performance. These frameworks provide standards, criteria, and metrics for companies to measure their impact on sustainability, ethics, and governance, allowing investors, regulators, and stakeholders to evaluate how well a company integrates ESG factors into its operations. Here’s a breakdown of the three components of ESG: 1. Environmental (E) : Focuses on how a company impacts the environment and how it manages environmental risks. Key areas include: Climate change and carbon emissions. Energy efficiency and renewable energy use. Waste management and pollution control. Water usage and conservation. Biodiversity and ecosystem protection. 2. Social (S) : Addresses the company’s relationships with employees, customers, communities, and suppliers. Key areas include: Labor practices : Working conditions, employee welfare, and labor rights. Diversi