What is the difference between ESG and CSR?
What is ESG?
Environmental, Social and Governance (ESG) criteria are a set of standards that potential investors use to screen companies that they could potentially invest in.
ESG standards look at a company’s environmental impact (Environmental) and their relationships in the area they operate in, including with employees, suppliers, customers and the wider community (Social). They also look at the company’s leadership, executive pay, shareholder rights, audits and internal controls (Governance).
What is CSR?
Corporate Social Responsibility (CSR) is a self-regulating business model where companies are more conscious of the impact they are having on wider society. This includes the environment, the economy and people within society.
Companies who practice Corporate Social Responsibility (CSR) actively operate in ways that enhance society and the world around them, whilst also making themselves more accountable to themselves, their stakeholders and the public.