ESG (ESG Criteria)

What is ESG?

ESG, an acronym for Environment, Social, and Governance. ESG criteria are the criteria used to assess a company's consideration of environmental, social, and governance impacts in its activities.

The ESG analysis and rating of economic actors, whether listed or unlisted (companies, local authorities, etc.), highlight their level of involvement in sustainable development issues.

The consideration of these extra-financial criteria beyond traditional financial criteria distinguishes socially responsible investment (SRI) from traditional management.

ESG criteria

Environmental Criteria

Environmental criteria measure the direct or indirect impact of the company's activity on the environment, for example CO2 emissions, energy consumption, waste production and recycling, pollution, the preservation of natural resources, or animal treatment.

Social Criteria

Social criteria relate to the direct or indirect impact of the company's activity on stakeholders (in particular employees, customers, suppliers, and local communities) with reference to universal values (for example: human rights, international labor standards — safety, security, representation…).

Governance Criteria

Governance criteria relate to how the company is managed, administered, and controlled (relations with shareholders, board of directors and management, transparency of executive compensation, anti-corruption measures), etc.