What You Need to Know About ESG and ESRS (Even If You Think They Don’t Affect You)
The Alphabet of Modern Business
The business world is currently undergoing one of its most significant transformations in decades. Until recently, companies were evaluated solely through the lens of profits, Excel spreadsheets, and hard financial data. Today, that is no longer enough. Non-financial reporting has entered the boardroom - and it is now strictly regulated by law. If you have been seeing terms like ESG or ESRS for a long time but still aren’t sure what they mean, this article will help you absorb them quickly and painlessly.
ESG and ESRS
Let’s start with the basics. ESG (Environmental, Social, and Corporate Governance) is a management philosophy based on the principle that a company must care for the environment (e.g., carbon footprint, water consumption), society (employees, local communities, human rights), and corporate governance (business ethics, board transparency, anti-corruption measures).
In turn, ESRS (European Sustainability Reporting ...
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