ESG

Environmental, Social and Corporate Governance (ESG) is a complex set of standards for company behavior, business strategies, and sustainability. ESG is much broader than just maximizing company profits. It includes non-financial performance indicators that cover issues in three categories: environment, social aspects, and governance. In addition, ESG is a stakeholder-centric approach for businesses. It takes into account the interests of all stakeholders: employees, investors, society, and the environment.

ESG helps to reduce risks and increase profitability, that is, the ratio of income from an investment to its starting cost. This helps stakeholders to understand how the organization manages the risks and opportunities associated with sustainability. ESG analysis encourages continuous improvement, and in general, ESG-focused companies are more resilient and less risky. Today, the focus is on such organizations and investments in them are growing.

ESG is a progressive modern method currently used by most investment funds. Because investors seek to fund the companies that are responsible for the environment, society, and internal governance. ESG criteria are a kind of guarantee that a company is socially responsible, uses transparent accounting methods, and is accountable to shareholders. Unsustainable companies with outdated practices and which activities have harmful effects on the environment or society aren't currently interesting to investors.

Adherence to ESG principles ensures companies higher profits, competitiveness in the market, high dividend payments and returns, and decrease risks. ESG includes ways to maximize stakeholder well-being, makes transparent the company policy, and helps evaluate how a company manages the risks. The choice of sustainable responsible companies working according to ESG ensures the minimization of risks for investors, helps them anticipate critical situations and avoid suspicious investments.

ESG includes three groups of criteria:

Environmental criteria are related to protecting the environment from pollution of water, air, soil, and resulting climate change. They consider how the company limits emissions of chemicals, greenhouse gases, and other harmful pollutants. The use of renewable energy is encouraged along with waste management, resource depletion control, deforestation, and saving biodiversity.

Social criteria consider the social relationships with employees, suppliers, customers, and the communities in which the company operates. They take into account respect for human rights and health, how the company manages relationships among employees and prevents conflicts, which are its workplace and safety policies, working conditions, and wages.

Governance criteria are focused on the company's government and decision-making. They take into account transparency of financial reporting, tax strategy, audit, anti-bribery and anti-corruption policies, and relationships with all shareholders, investors, and customers.

Example 1. ESG Infographics Design in ConceptDraw DIAGRAM

Environmental, Social and Corporate Governance solution helps to outline the ESG standards, factors, and key ESG criteria that align with business strategy, build and enhance ESG frameworks. Illustrate easily principles of sustainability, waste management, the importance of the use of renewable energy sources, and ways to avoid climate change, deforestation, and biodiversity loss. The creation of ESG infographics helps to provide better transparency and thorough reporting, show quantifiable business metrics, eliminate risks and gaps in the business to achieve growth.

Example 2. ESG Solution Libraries Design Elements

Environmental, Social, and Corporate Governance solution offers 6 libraries of vector design elements of corporate governance, environmental and social impacts, biodiversity, renewable energy and resources, life cycle stage, and more to create ESG infographics, diagrams, and illustrations of any complexity without efforts. The ESG samples and examples included in the Environmental, Social, and Corporate Governance solution are illustrative and perfectly suit for using as templates for your own diagrams.

Example 3. ESG Infographics

The ESG infographic samples you see on this page were created in ConceptDraw DIAGRAM software using the drawing tools of the Environmental, Social, and Corporate Governance Solution. These examples successfully demonstrate the solution's capabilities and professional results you can achieve using it. An experienced user spent 5-10 minutes creating each of these samples.

Use the drawing tools of the Environmental, Social, and Corporate Governance solution to design your own ESG Infographics quick, easy, and effective.

All source documents are vector graphic documents. They are available for reviewing, modifying, or converting to a variety of formats (PDF file, MS PowerPoint, MS Visio, and many other graphic formats) from the ConceptDraw STORE. The Environmental, Social, and Corporate Governance Solution is available for ConceptDraw DIAGRAM users.