Environmental, Social, and corporate Governance

 

  1. Environmental protection: "Environmental" in ESG focuses on reducing the environmental impact of companies and on measures that reduce greenhouse gas emissions, waste disposal, energy efficiency and the protection of natural resources.
     
  2. Social responsibility: "Social" in ESG looks at the company's relationships with its employees, suppliers, customers and the communities in which it operates. Fair working conditions, diversity, inclusion, human rights and the contribution to the common good are binding objectives.
     
  3. Corporate governance: "Governance" in ESG refers to the way in which the company is managed and sets guidelines for corporate ethics, transparency, anti-corruption, etc... Responsible corporate governance is a prerequisite for the trust of all stakeholders in the company.
     
  4. Long-term value creation: Beyond the ethical aspect, ESG-compliant investments are attractive for more stable and sustainable value creation. Improved risk management combined with long-term value creation and a stronger market position is more attractive for investors and customers.
     
  5. Be future-proof: More and more ESG regulations are becoming legal requirements around the world. Those who are prepared are ahead of the game and those who meet these requirements avoid penalties and potentially cost-intensive restructuring to ensure their legal compliance.
     
  6. Investor interest: Investors are increasingly looking at the sustainability of companies in the context of the highest possible compliance with ESG criteria. Companies that perform well in these areas can attract capital more easily and have a greater chance of diversifying their investor base.
     
  7.  Reputation and trust: An authentic commitment inside and outside the company, which also communicates compliance with ESG regulations, can improve a company's reputation and strengthen the trust of customers, employees and other stakeholders in the long term.