ESG in Creating Values

ESG stands for Environmental, Social and Governance. A strong ESG in the business can create values.

Environmental means the energy that the company takes and waste should consider about the resources and the consequences for living beings. It is also connected with the issues about carbon emissions and climate change.

Social means the relationships quality between the company and communities that can affect the company’s reputation. It includes labor relations, diversity and inclusion.

Governance is about the internal system of practices, controls and procedures to govern itself. The effective governance can be seen in company’s decisions that comply with the law, meet the external stakeholders’ needs.

If each company use ESG as the compass in doing the business, it will bring the company’s sustainability.

Reference: https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/five-ways-that-esg-creates-value?cid=other-eml-ttn-mip-mck&hlkid=b9bfc0b222b84a0b912bcc2367249f05&hctky=11705927&hdpid=9d5ed7cf-6d6c-4c6a-9f49-de48c258eed0