Over the past year and a half, I’ve learned a lot from working in the renewable energy industry as a recruiter but one of the things I’ve become most interested in is ESG. It’s become a hot topic lately and it will be key in helping to create a cleaner and more equitable world along with more durable companies.
So what is ESG?
ESG stands for Environmental, Social, and Governance. Many countries already have ESG criteria and there are also many independent bodies that have created frameworks aimed at standardizing what things should be tracked, reported on, and measured inside of the ESG Framework. Organizations can follow these frameworks such as SASB and TCFD to get a good “ESG Score”. An ESG Score can be compared to a credit score.
Under Environmental some things looked at are the tracking, reporting, and reduction of carbon footprint, the identification of any negative environmental impacts through pollution for example, as well as the measurement of any risks the business may face from climate change/disasters.
Social looks at the diversity of an organization, the hiring practices, and even supply chain to ensure ethical and fair treatment of all people involved in supporting their business operations so far as they are able.
