What is ESG? A Comprehensive Guide for Companies

Understanding Environmental, Social, and Governance (ESG)

ESG is a framework used to measure a company's sustainability and ethical impact. Today, investors focus not only on financial returns but also on how companies contribute to the planet and society.

Environmental Criteria

Examines how a business impacts nature. Carbon footprint, energy efficiency, waste management, and water usage fall under this category.

Social Criteria

Focuses on how the company treats its employees, suppliers, and the community. Diversity, occupational safety, human rights, and employee satisfaction are key metrics.

Governance

Relates to how a company is managed. Transparency, board structure, ethical codes, and anti-corruption policies are analyzed here.

Why is it important? ESG-focused companies prove to be more resilient, profitable, and insulated against risks in the long term. Cliff is here to guide your end-to-end ESG transformation.