Why are ESG criteria important for a company ?

ESG criteria are becoming increasingly useful for companies. They generally encompass the company's activities for social and environmental management. The benefits of ESG criteria are manifold. Do you want to understand the concept of ESG ? The main information on ESG criteria is in the development of this article.

What do we mean by ESG criteria ?

The term ESG is not yet well understood by everyone. Some people confuse the term and use it in the wrong way. ESG literally means environmental, social and governance criteria. You can visit the news about ESG scoring to find out more. Indeed, this aspect does not take on the meaning of the École Supérieur de Gestion here. It should be understood simply that it refers specifically to criteria aimed at evaluating an entity's CSR approaches. Moreover, the term ESG is used internationally for extra-financial analysis.

What are the different types of ESG criteria ?

There are actually three types of ESG criteria. Explicitly, you will see the environmental, social and governance criteria. The first one deals with environmental management. In other words, preventing catastrophic risks and reducing greenhouse gases. The second criterion is more concerned with the respect of workers' rights within a company. It is this social criterion that ensures the prevention of accident risks, the manner of subcontracting and social collaboration. The third type of criterion is essentially devoted to good governance. Thus, it strongly combats corruption, the management of executive remuneration.

How important are ESG criteria for a company ?

ESG criteria are very important for both large and small companies. First of all, they allow them to take advantage of opportunities. Companies with ESG criteria are more likely to be attractive to investors. Because they have global management responsibilities through ESG criteria. It is these criteria that give your company a good image. They are not only a source of productivity and performance, but ESG criteria also attract investors to a company. Ultimately, ESG criteria increase the productivity of your company by boosting its image.

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