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Not to be confused with CSR (Corporate Social Responsibility), ESG criteria are those that allow us to evaluate, establish and draw up a fair analysis of a company's level of social responsibility performance. There are three criteria: environmental, social and governance.
The environmental criterion
As its name indicates, this criterion is entirely related to the environment. It is a detail that must be fully mastered by anyone wishing to learn more about ESG consulting. In short, the environmental criterion will enable the ESG consultant to analyse and study all the actions undertaken and taken by the company to protect the environment in general.
More specifically, it will assess the efforts made by the company in terms of energy consumption, energy reduction, waste management and industrial waste, the reduction of greenhouse gas emissions and, above all, the evaluation of the carbon level. The combined result of the study of all these factors will then make it possible to determine at the end of the analysis whether the company is respectful of the environmental criterion, which is an essential part of the ESG approach.
The social criterion
This criterion has more to do with the social environment within and outside the company. To put it plainly, it allows for the evaluation of working conditions and the treatment of all employees, whether they are internal or external to the company.
It is through the study of the social criterion that it will be possible to determine the level of diversity, parity, gender equality and others within the company. Minorities, disabilities and employee protection are also on the agenda. In other words, no social and welfare factors will be omitted.
The governance criterion
This criterion is aimed more at the members of the company's board of directors as well as at the management. From departmental and technical managers to the top management structure. Issues of transparency, anti-fraud and harassment are considered here.
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