ESG & SDG

What is ESG?

ESG is a way of investing or assessing companies on their Environmental, Social and Governance performance while also considering financial returns. It has become increasingly popular with investors who want to invest responsibly while still making a profit.

And they form the guidelines by which to hold companies accountable for their actions.

SDG and ESG refer to factors that are defined by the 3 Pillars of Sustainability:

• Environmental

• Social

• Governance

SDG and ESG provide a roadmap for a sustainable future. A future in which we can all thrive, not just survive.

The importance of these two ideas lies in the fact that both SDG and ESG focus on long-term solutions. In an increasingly uncertain world, with fear for the future of the planet due to climate change, people are looking for greener pastures. Staying resilient is no longer good enough.

The goals and guidelines are always evolving as we learn more about how to live sustainably on this planet.

How are the two different?

SDGs are global goals set out by the United Nations, whereas ESG is a rating system used by companies to measure their environmental and social credentials.

ESG measures how well a company is performing in terms of its social and environmental responsibilities throughout its supply chain and operations – as opposed to looking at the wider context of human rights.

SDGs are time bound i.e. they have to be achieved by 2030, whereas ESG focuses on long-term solutions and is more high level than the Sustainable Development Goals, which focus on specific targets around the world.