ESG, perhaps it should be GSE
- Divya M
- Jul 27, 2021
- 4 min read
Many of us are familiar with this term, which has become a buzzword these days i.e., ESG which stands for Environmental, Social, and Governance.
In business, ESG is closely related to sustainability. In a business context, sustainability is not only about the company's business model but also how its products and services contribute to sustainable development.
ESG,...
It's more than just following a regulation
It's more than just norms and policies
It's more than just sustainability and environmental damage mitigation

According to McKinsey, in one of their article they say, Your business, like every business, is deeply intertwined with environmental, social, and governance (ESG) concerns. It makes sense, that ESG proposition has a higher value creation.
They continue by saying that, "ESG is an inextricable part of how you do business, its individual elements are themselves intertwined. For example, social criteria overlaps with environmental criteria and governance when companies seek to comply with environmental laws and broader concerns about sustainability. Our focus is mostly on environmental and social criteria, but, as every leader knows, governance can never be hermetically separate. Indeed, excelling in governance calls for mastering not just the letter of laws but also their spirit—such as working and regulating with organisations with transparency and integrity."
By moving towards a more human way, "...instead of formalistically submitting a report and letting the results speak for themselves", businesses can use ESG in order to add real value to their balance sheet.
McKinsey also share the percentage of what impact can ESG have, towards our society, environment and governance.

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