Environmental, social, and governance (ESG) reporting has become an essential aspect of corporate transparency and accountability. The ESG framework provides a comprehensive set of metrics that businesses can use to evaluate and report on their environmental, social, and governance impact to customers, employees, and investors.
The ESG reporting framework includes three main categories: environmental, social, and governance. Let’s take a closer look at each of these categories:
- Environmental: This category includes metrics related to a company’s impact on the environment. These metrics may include greenhouse gas emissions, energy consumption, water usage, waste management, and other environmental factors.
- Social: This category includes metrics related to a company’s impact on society. These metrics may include labor practices, human rights, diversity and inclusion, community engagement, and other social factors.
- Governance: This category includes metrics related to a company’s management and governance practices. These metrics may include board composition, executive compensation, ethics and compliance, risk management, and other governance factors.
