What on Earth is ESG?

So you’re interested in becoming more sustainable? And you’re seeing the term ‘ESG’ around a lot. But what does it mean? And how can it benefit your company?

I’m glad you asked.

There’s no hotter area on Wall Street than ESG with sustainability-focused funds nearing $2 trillion.”  – Pippa StevensCNBC market

ESG is the Environmental, Social, and Governance factors used to determine and assess the sustainability status of a company or country.

While the E, the S and the G mostly weave together like a quilt, we’ll look at what they mean respectively.


Environmental factors look at the effect a business has on the environment and its contribution to climate change. It investigates aspects such as energy efficiency, waste management and the release of greenhouse gas emissions.

Any business requires energy and resources, which has an environmental impact. As a business owner, you should watch out for opportunities to lower this environmental footprint.


Social factors consider human rights implications, labour regulations, supply chain ethics, health and safety policies etc. A company’s interaction with the community and focus on locality is also a consideration here.

Look at the relationships your company has with institutions and other stakeholders. Consider your stance on diversity and inclusion.


Governance refers to those internal company policies, practices and procedures which must address the needs of different stakeholders. A sustainable corporate governance will match stakeholder expectations with the needs of the planet.

There is a greater need for companies to pay close attention to the role they play in the changing environment and the role the changing environment has on a company’s bottom line.

If a company does not manage future environmental risks, they are sure to endure higher costs. And don’t forget the damage to your reputation if a relevant topic is picked up in the media.

Want to learn more about how Moiety can benefit your bottom line through ESG practices? Contact Us.

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