Do you still talk CSR, or ESG impact?

ESG are ‘Environmental, Social And Governance Criteria‘ – a set of standards for a company’s operations that socially conscious investors use to screen investments. We have heard of the Triple Bottom Line before, and of the 3Ps – people, planet, and profit. Here’s ESG: Environmental criteria determine how a company performs as a steward of the natural environment. Social criteria examine how a company manages relationships with its stakeholders: e.g. its employees, suppliers, customers, local governments, NGOs, unions, and the communities where the company operates and where its employees work and live. Governance criteria deal with, for example, a company’s leadership, executive pay, audits and internal controls, and shareholder rights.

Goldman Sachs writes: ‘In our Environmental, Social and Governance Impact Report we illustrate how our work with clients helps to drive broader economic and social value. We also highlight our active engagement in the communities where we live and work and our support of an array of initiatives to promote environmental sustainability and community development.’

E.ON writes: ‘Standardized indicators from the areas of Environment, Social and Governance (ESG) are gaining in importance in the capital market for evaluating companies, which is why we structure the reporting of our sustainability performance along material ESG criteria over the past several years.’

So, from the first Environmental Reports in the late 1980s, to then CSR Reports around the year 2000, soon to be followed by CR Reports, to Sustainability Reports as of around 2005, to now ESG Reports for the past couple of years – the field keeps evolving, and as practitioners, we need to evolve with it … The important thing to remember: it remains all about impact.

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