Environmental, social, and governance (ESG) criteria are a set of standards for an organization's behavior used by socially conscious stake or shareholder to screen potential investments or business relation. Environmental criteria consider how the organization safeguards the environment, including corporate policies addressing climate change, for example. Social criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. Governance deals with the organization’s leadership, executive pay, audits, internal controls, and shareholder rights.
ESG that used to be a tool required by investors or key shareholders is now a key marketing asset for all stakeholders. The ultimate value of ESG criteria depends on whether they encourage organizations to drive real change for the common good, or merely thick boxes and publish reports. That, in turn, will depend on whether the investment flows follow ESG criteria that are realistic, measurable, and actionable.
Beyond ESG - Gender Mainstreaming
The principle of gender mainstreaming consists of taking systematic account of the differences between the conditions, situations and needs of women and men in all policies and actions. The gender impact assessment is one of the methods for gender mainstreaming. It should be used in the very early stage of any project development and policymaking, i.e. when designing it. The aim is to achieve a significant impact not only on the project / policy design but also on the planning, in order to ensure adequate equality outcomes.
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Benefits of ESG
Many company leaders mistakenly believe that Environmental, Social and Governance (ESG) is only for “big” organizations. In fact, any small or mid-size company can make a significant impact on sustainability while also reducing costs, having a competitive advantage, retaining talent, attracting investors, partners, and more.