It's about the environment, right?  Well yes, but that is only part of it and after learning a bit more at a recent conference, I thought it might be helpful to just give a quick and simple summary.

'ESG' is actually short for Environmental, Social & Governance and represents a more stakeholder-centric approach to business.  There are regional differences of course, but companies that are incorporating how they conduct business around these pillars, are able to pick and choose a range of tactics and strategies.  Firstly though, it is important to define the issues that fit into the three pillars with the World Economic Forum defining them as the following:

Environmental: 

This is the preservation of the natural world around us and includes;

• Energy efficiency
• Renewable fuels
• Climate risk
• Water pollution and water management
• Recycling processes
• Emergency preparedness
• Greenhouse Gas emissions

Social:

The consideration of humans and our interdependencies which includes;

• Mental Health
• Health & Safety
• Working conditions
• Employee benefits
• Gender & Diversity Inclusion
• Impact on local communities
• Human rights

Governance:

A set of rules and principles defining rights, responsibilities, and expectations between all involved stakeholders of the organisation including;

• Ethical standards
• Stakeholder engagement
• Board diversity and governance
• Shareholder rights
• Compensation guidelines

It could be argued that the governance piece is the most important of all as it can keep your organization and stakeholders accountable for any of the pledges or actions you look to take.  There is also a growing school of thought that feels resilience should also be added to the pillars.