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What is ESG?
More and more companies are working towards ESG, and
internationally renowned brands have listed ESG as a corporate goal,
but what exactly does ESG mean? What does it have to do with us?
ESG is often used in conjunction with or interchangeably with "sustainable investment".
Sustainable investment is an overall concept, and ESG is the data used to identify and formulate specific sustainable investment plans.
It is an important indicator for evaluating whether a company is operating sustainably.
The three letters of ESG represent the following meanings:
1. Environmental (Environmental)
covers climate risks, natural resource scarcity, pollution and waste, carbon emission reduction, climate change, and other environmental sustainability related issues and investment opportunities.
2. Social responsibility (Social)
includes labor welfare, working environment, product responsibility, information security, community feedback and other related topics.
3. Corporate governance (Governance)
includes issues related to corporate governance behaviors such as corporate management, corporate regulations, information transparency, shareholder rights, corporate ethics, board of directors quality and effectiveness, etc.
In addition to financial profits, companies must also take into account all aspects, such as taking care of employee welfare, giving back to local communities, working towards environmental sustainability, etc., and pay more attention to social responsibilities, so as to expand the scale of the company and operate sustainably.