Understanding ESG
What is ESG?
ESG stands for Environmental, Social, and Governance — three core pillars of corporate sustainability.
These factors are directly tied to a company’s long-term growth and sustainability. Below are the key components of ESG.
Environmental ( Climate Change and Greenhouse Gas  Emissions, Environmental Pollution and Regulations, Ecosystems and Biodiversity) 
						+ Social (Data Protection and Privacy, Human Rights, Diversity, Equity and Inclusion, Community Engagement )
						 + Governance (Board and Audit Committee Structure, Anti-bribery and Anti-corruption, Business Ethics) Environmental ( Climate Change and Greenhouse Gas  Emissions, Environmental Pollution and Regulations, Ecosystems and Biodiversity) 
						+ Social (Data Protection and Privacy, Human Rights, Diversity, Equity and Inclusion, Community Engagement )
						 + Governance (Board and Audit Committee Structure, Anti-bribery and Anti-corruption, Business Ethics) Environmental ( Climate Change and Greenhouse Gas  Emissions, Environmental Pollution and Regulations, Ecosystems and Biodiversity) 
						+ Social (Data Protection and Privacy, Human Rights, Diversity, Equity and Inclusion, Community Engagement )
						 + Governance (Board and Audit Committee Structure, Anti-bribery and Anti-corruption, Business Ethics)
In the past, corporate evaluation primarily focused on financial metrics — how much was invested and how much was earned. Today, however, the growing impact of issues such as climate change has highlighted the importance of non-financial metrics in assessing a company’s true value. As awareness of corporate social responsibility expands, both investors and consumers increasingly emphasize non-financial value alongside financial performance.
(Past) Financial Value : (It’s all about making money! Operating Profit = Corporate Value), 
						(Present) Non-Financial Value : (Sustainable growth isn't only about the numbers — it's also about how a company impacts society!) (Past) Financial Value : (It’s all about making money! Operating Profit = Corporate Value), 
						(Present) Non-Financial Value : (Sustainable growth isn't only about the numbers — it's also about how a company impacts society!) (Past) Financial Value : (It’s all about making money! Operating Profit = Corporate Value), 
						(Present) Non-Financial Value : (Sustainable growth isn't only about the numbers — it's also about how a company impacts society!)
ESG Definition
ESG is defined differently depending on the institution’s mission, business type, and stakeholders. Commonly presented keywords include investment decisions, long-term returns, financial value, corporate risks, social responsibility, and sustainability. In capital markets, ESG encompasses the critical non-financial factors that influence long-term financial value and guide investment decisions.
Organization :  UN PRI, Definition : factors into investment decisions, to better manage risk and generate sustainable, long-term returns, Keywords : investment decisions, generating sustainability, risk management, long-term returns.
							Organization :  Chartered Financial Analyst (CFA) institute, Definition : investors are considering in the context of corporate behavior. Often these ESG issues have been considered non-financial or non-quantifiable
							in nature and have a medium-to long-term time frame in their effect on a Company. Keywords : Investment considerations, corporate behavior, medium- to long-term time frame, non-financial factors.
							Organization :  Sustainable Stock Exchange Initiative,  Definition : broad set of environmental, social and governance considerations that may impact a company's ability to execute its business strategy and create value, Keywords : environment, social, governance, business strategy, create value, impact a company’s ability.
							Organization :  Nasdaq, Definition : broad set of environmental, social and corporate governance considerations that may impact a company's ability to execute its business strategy and create value over the long term, Keywords : impact a company’s ability, business strategy, create value, long-term.
							Organization :  London Stock Exchange Group, Definition : 'sustainability', 'corporate responsibility' or 'corporate social responsibility' to refer to strategies or programmes related to ESG activities. Keywords : sustainability, corporate social responsibility, strategies or programs.
							Organization : Toronto Stock Exchange, Definition : three categories of factors that may affect an organization's performance, and therefore, its value, Keywords : organizational performance, value.
							Organization : RobecoSAM,  Definition : factors to evaluate companies and countries on how far advanced they are with sustainability,  Keywords : factors to evaluate, sustainability. Organization :  UN PRI, Definition : factors into investment decisions, to better manage risk and generate sustainable, long-term returns, Keywords : investment decisions, generating sustainability, risk management, long-term returns.
							Organization :  Chartered Financial Analyst (CFA) institute, Definition : investors are considering in the context of corporate behavior. Often these ESG issues have been considered non-financial or non-quantifiable
							in nature and have a medium-to long-term time frame in their effect on a Company. Keywords : Investment considerations, corporate behavior, medium- to long-term time frame, non-financial factors.
							Organization :  Sustainable Stock Exchange Initiative,  Definition : broad set of environmental, social and governance considerations that may impact a company's ability to execute its business strategy and create value, Keywords : environment, social, governance, business strategy, create value, impact a company’s ability.
							Organization :  Nasdaq, Definition : broad set of environmental, social and corporate governance considerations that may impact a company's ability to execute its business strategy and create value over the long term, Keywords : impact a company’s ability, business strategy, create value, long-term.
							Organization :  London Stock Exchange Group, Definition : 'sustainability', 'corporate responsibility' or 'corporate social responsibility' to refer to strategies or programmes related to ESG activities. Keywords : sustainability, corporate social responsibility, strategies or programs.
							Organization : Toronto Stock Exchange, Definition : three categories of factors that may affect an organization's performance, and therefore, its value, Keywords : organizational performance, value.
							Organization : RobecoSAM,  Definition : factors to evaluate companies and countries on how far advanced they are with sustainability,  Keywords : factors to evaluate, sustainability. Organization :  UN PRI, Definition : factors into investment decisions, to better manage risk and generate sustainable, long-term returns, Keywords : investment decisions, generating sustainability, risk management, long-term returns.
							Organization :  Chartered Financial Analyst (CFA) institute, Definition : investors are considering in the context of corporate behavior. Often these ESG issues have been considered non-financial or non-quantifiable
							in nature and have a medium-to long-term time frame in their effect on a Company. Keywords : Investment considerations, corporate behavior, medium- to long-term time frame, non-financial factors.
							Organization :  Sustainable Stock Exchange Initiative,  Definition : broad set of environmental, social and governance considerations that may impact a company's ability to execute its business strategy and create value, Keywords : environment, social, governance, business strategy, create value, impact a company’s ability.
							Organization :  Nasdaq, Definition : broad set of environmental, social and corporate governance considerations that may impact a company's ability to execute its business strategy and create value over the long term, Keywords : impact a company’s ability, business strategy, create value, long-term.
							Organization :  London Stock Exchange Group, Definition : 'sustainability', 'corporate responsibility' or 'corporate social responsibility' to refer to strategies or programmes related to ESG activities. Keywords : sustainability, corporate social responsibility, strategies or programs.
							Organization : Toronto Stock Exchange, Definition : three categories of factors that may affect an organization's performance, and therefore, its value, Keywords : organizational performance, value.
							Organization : RobecoSAM,  Definition : factors to evaluate companies and countries on how far advanced they are with sustainability,  Keywords : factors to evaluate, sustainability.
ESG can be interpreted from normative, integrated, instrumental, and political perspectives.

						Diverse Interpretations of ESG : Normative perspective(Corporate Compliance Obligations : the obligation of businessmen to pursue those policies, to make those decisions, or to follow those lines of action which are desirable in terms of objectives and values of our society (Bowen, 1953))
						Diverse Interpretations of ESG : Integrated perspective : Stakeholder Expectation Alignment (the economic, legal, ethical, and discretionary expectations that a society has of an organization at a given point in time (Carroll, 1979))
						Diverse Interpretations of ESG : Instrumental perspective : Integration into Investment Decisions(CSR can be viewed as a form of investment or differentiation strategy. Managers determine the appropriate level of CSR investment (McWilliams and Siegel, 2001))
						Diverse Interpretations of ESG : Political perspective : Political Interests(Political CSR entails those responsible business activities that turn corporations into political actors, by engaging in the provision of public goods in cases where public authorities are unable or unwilling to fulfil this role (Scherer at al., 2016)) 
						Diverse Interpretations of ESG : Normative perspective(Corporate Compliance Obligations : the obligation of businessmen to pursue those policies, to make those decisions, or to follow those lines of action which are desirable in terms of objectives and values of our society (Bowen, 1953))
						Diverse Interpretations of ESG : Integrated perspective : Stakeholder Expectation Alignment (the economic, legal, ethical, and discretionary expectations that a society has of an organization at a given point in time (Carroll, 1979))
						Diverse Interpretations of ESG : Instrumental perspective : Integration into Investment Decisions(CSR can be viewed as a form of investment or differentiation strategy. Managers determine the appropriate level of CSR investment (McWilliams and Siegel, 2001))
						Diverse Interpretations of ESG : Political perspective : Political Interests(Political CSR entails those responsible business activities that turn corporations into political actors, by engaging in the provision of public goods in cases where public authorities are unable or unwilling to fulfil this role (Scherer at al., 2016)) 
						Diverse Interpretations of ESG : Normative perspective(Corporate Compliance Obligations : the obligation of businessmen to pursue those policies, to make those decisions, or to follow those lines of action which are desirable in terms of objectives and values of our society (Bowen, 1953))
						Diverse Interpretations of ESG : Integrated perspective : Stakeholder Expectation Alignment (the economic, legal, ethical, and discretionary expectations that a society has of an organization at a given point in time (Carroll, 1979))
						Diverse Interpretations of ESG : Instrumental perspective : Integration into Investment Decisions(CSR can be viewed as a form of investment or differentiation strategy. Managers determine the appropriate level of CSR investment (McWilliams and Siegel, 2001))
						Diverse Interpretations of ESG : Political perspective : Political Interests(Political CSR entails those responsible business activities that turn corporations into political actors, by engaging in the provision of public goods in cases where public authorities are unable or unwilling to fulfil this role (Scherer at al., 2016))