ESG policies

ESG policies refer to a set of principles and guidelines that companies, organisations, and investors adopt to incorporate Environmental, Social, and Governance (ESG) factors into their decision-making, operations and risk management processes. These policies aim to promote sustainable and responsible business practices, as well as to consider broader societal and environmental impacts beyond just financial returns.

Companies and organisations implement ESG policies to align their values with their business strategies, mitigate risks, enhance their reputation, and attract ethical investors and customers. These policies are often disclosed in sustainability reports, annual reports, and on their websites, allowing stakeholders to assess their commitment to ESG factors.

Investors, on the other hand, use ESG policies to evaluate potential investments and assess the long-term sustainability and ethical practices of companies. Many investment firms and funds use ESG ratings and scores to identify companies that meet their ESG criteria.

The scope and rigor of ESG policies can vary widely among different business sectors and organisations, and they may evolve over time to address emerging environmental and social issues.