Resources
What Is ESG?
2025-06-26
Knowledge ESG
What ESG means and why it matters
Understanding ESG Basics

ESG stands for Environmental, Social, and Governance. These three pillars are used to evaluate a company’s long-term sustainability and societal impact. While environmental criteria examine how a company manages natural resources and emissions, social criteria focus on its treatment of employees, customers, and communities. Governance relates to ethical business practices, leadership, and shareholder rights.

Why ESG Matters to Business

Investors, regulators, and customers increasingly value companies that align with ESG principles. ESG isn’t just about reputation—it affects access to funding, regulatory compliance, and market competitiveness. Businesses that ignore ESG may face rising costs, legal risks, and loss of stakeholder trust.

Adopting ESG in Practice

Integrating ESG into business operations begins with transparency. We help companies monitor carbon emissions, assess social responsibility, and track governance metrics through digital platforms. By turning ESG into measurable actions, businesses can report effectively and meet rising global expectations.

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Learn how the Science Based Targets initiative (SBTi) helps companies set and validate science-aligned climate targets. Step-by-step process, benefits, updates, and net-zero guidance.

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Learn what CDP (Carbon Disclosure Project) is, how it works, and why environmental disclosure matters in 2024. This Q&A article explains questionnaires, scoring, recent updates, and business benefits.

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Learn the key differences between CSRD and ESG. Understand CSRD reporting requirements, ESRS standards, and how to prepare for sustainability compliance under EU law.

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Learn how EcoVadis evaluates your sustainability efforts and discover actionable steps to improve your rating, including documentation, digital tools, and supplier engagement strategies.

Knowledge

Discover how AI-powered carbon tools replace slow manual reporting with fast, accurate emissions tracking. Learn why digital automation improves decisions and drives low-carbon strategies.