Photo by OCG Saving The Ocean on Unsplash
ESG stands for Environmental, Social and Governance.
Some investors and analysts are incorporating these qualitative measures into their analyses of prospective investments.
Although they’re not strictly part of the financial reporting process in most cases some companies are including ESG related information in their reports.
Publicly-oriented organisations such as the Sustainability Accounting Standards Board (SASB), the Global Reporting Initiative (GRI) and the Task Force on Climate-related Financial Disclosures (TCFD) are currently developing standards and guidelines related to ESG reporting.