ESG criteria are environmental, social and governance factors developed in 2004 by the UN in collaboration with the world’s largest institutional investors and banks.
In recent years they have become the benchmark for socially responsible investment (SRI). . Properly identifying, managing and measuring these criteria has a direct impact on their capacity to receive investments, on their reputation and, by extension, on the sustainability of the company.
Environment (E)evaluates a company’s performance as a nature administrator. It analyzes the impact of its activities on the environment and deals with environmental risks. It includes both direct operations and the entire supply chain.
Social Criteria (S) examines the strengths and weaknesses of how a company manages its relationships with employees, suppliers, customers and the communities in which it operates.
Governance (G) addresses the company's leadership, executive compensation, audits, internal controls and shareholder rights. Investors want to know if they can trust the company and what kinds of decisions are being made behind closed doors.
Factors such as the pandemic and the environmental crisis have accelerated investment trends and companies’ orientations towards these guidelines