The term ESG refers to the environmental and social governance framework within a firm. A strong ESG strategy provides a blueprint for measurable improvements in the firm's global carbon footprint and its social equity posture along with a variety of other related metrics. ESG is a growing corporate initiative which is expected to be codified by the SEC from a reporting requirements perspective for publicly traded firms in the near future.
The ESG context is populated with a variety of different industry specific approaches to ESG in the absence of a governing body issuing measurement standards for universal adoption. In preparation for greater structure in the ESG context, firms may wish to calibrate their ESG profile by implementing a corporate policy confirming its commitment to ESG objectives, starting the compilation of metrics that reflect progress related to ESG, and engaging in ESG forums to acquire best practices.
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