ESG, or Environmental, Social, and Governance, is a comprehensive approach to evaluating a company's impact on society and the environment. It goes beyond just addressing environmental concerns like climate change and resource depletion and encompasses all non-financial factors that are not typically captured by traditional financial reporting.ESG consulting is particularly valuable in navigating the shift from a focus on corporate social responsibility (CSR) to ESG-centered initiatives. While CSR has been a part of corporate strategy for many years and provides a qualitative assessment of a company's impact on society and stakeholders, ESG offers a quantifiable method for measuring the same using metrics that promote long-term stakeholder value.Organizations are increasingly recognizing the importance of sustainability and are devising strategies that balance their responsibilities to society and the environment with creating value for a diverse range of stakeholders, including employees, customers, suppliers, investors, and community groups. The demand for transparency in company performance is also on the rise as stakeholders call for greater accountability and honesty.
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