Environmental, Social, and Governance (ESG) refers to the three central factors used to evaluate a company’s commitment to sustainability and responsible business practices. ESG meaning in business is particularly crucial as companies and investors alike focus on reducing environmental impact, promoting social responsibility, and ensuring strong corporate governance. In Kenya, ESG has grown in prominence, influencing decision-making in both corporate and investor circles.
What is ESG?
ESG stands for Environmental, Social, and Governance. It is a set of standards for companies that investors use to assess a company’s behavior and policies in these three areas:
- Environmental (E): Covers issues such as waste management, energy use, climate change policies, and sustainability initiatives.
- Social (S): Refers to how the company treats employees, stakeholders, and the community. It includes issues like labor standards, community development, and customer protection.
- Governance (G): Focuses on corporate leadership, business ethics, shareholder rights, executive compensation, and board diversity.
Implementing ESG practices ensures a business remains sustainable and responsible, improving its reputation and attractiveness to investors.
Contact Information:
For guidance on ESG implementation in Kenya, reach out to info@michroniaconsultants.co.ke or call 0745 359397. Visit www.michroniaconsultants.co.ke for more resources.
ESG Reporting: A Vital Business Requirement
What is ESG Reporting
ESG reporting is the practice of disclosing data on a company’s environmental, social, and governance impacts. This helps companies build trust with stakeholders by providing transparency on sustainability initiatives. ESG reporting standards are essential for businesses to communicate their performance in these areas effectively. Globally, ESG reporting is increasingly becoming a regulatory requirement, with more companies adopting frameworks such as the Global Reporting Initiative (GRI).
In Kenya, companies are starting to adopt ESG frameworks, recognizing the importance of reporting in attracting investors who prioritize sustainable and ethical investments.
Contact Information:
For ESG reporting services in Kenya, contact info@michroniaconsultants.co.ke or call 0745 359397.