Environmental
Focusing on environmental impacts is imperative for a company’s own sustainability as well as the health of the natural environment. As the effects of climate change are increasing and undeniable, companies are doing their part to protect and preserve the planet.
Social
With growing disparities and inequities along the socio-economic scale—and the need for action to improve our understanding of diversity, equity, inclusion, and justice in our communities and in the workplace—companies are looking at their own practices and being asked to show what they’re doing to make things better. Customer and employee engagement, human rights and safety, and community relationships are central to social cohesion.
Governance
The ethics, transparency, and growth strategies of a company are all part of its governance system. Governance reveals how decisions are made, who has a seat at the table, and how a company is meeting the needs and expectations of external stakeholders.
“ESG (Environmental, Social and Governance) impact is now a mainstream concern for all businesses. Corporations are expected to consider how their business operations affect the natural environment, as well as their workers and wider communities.
Customers and investors are making decisions based on these factors and so firms need to assess their ESG impact and to report to business owners and other stakeholders in a clear and consistent way.”
—Business Council of Co-operatives & Mutuals