ESG – Environmental, Social and Governance

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ESG stands for Environmental, Social and Governance, and is used to assess a company’s commitment to sustainability and corporate social responsibility, beyond its financial results. It is an approach that is very much present in responsible investment and modern business management.

E – Environmental

Assess the company’s impact on the environment. In addition to taking into account the environmental management system (according to “ISO 14001 – Environmental management system” or “EMAS – European environmental management and audit system”). It also takes into account the consumption of natural resources, greenhouse gas emissions (in accordance with “ISO 14064 , ISO 14067 – Quantification of greenhouse gas emissions and carbon footprint” and “GHG Protocol – Measurement of GHG emissions”), waste management, energy efficiency, the fight against climate change and the circular economy.

This refers to how the company manages its relationships with its stakeholders:

  • Working conditions.
  • Equality, inclusion and diversity. The Equality Plan helps to achieve this.
  • Health and safety at work, linked to the ISO 45001 certificate – Occupational health and safety.
  • Human rights and community relations, for example through CSR standards such as: “SA8000 – Social responsibility and working conditions”, “IQNet SR10 – Social responsibility management system”, “Ecovadis – Ecovadis Sustainability Assessment”, “Sedex SMETA 2 and 4 Pillars – Ethical Trade and Responsible Labour Practices” and the “GRI Standards – Sustainability Reports” with social and labour indicators.
  • Talent development and training, for example in accordance with the continuous training required by ISO 9001 and ISO 30414 on Human Capital.

Refers to how the company is managed and run:

  • Ethics and transparency. Some of the related rules and standards are: SGE 21 – Ethical and socially responsible management system. United
  • Nations Global Compact – Principles on human rights, labour, the environment and anti-corruption.
  • Board of directors structure
  • Fight against corruption, for example, in accordance with “ISO 37001 – Anti-bribery management systems”.
  • Remuneration policies Regulatory compliance, linked to “ISO 37301 – Compliance management”.

ESG brings sustainability, ethics, transparency, reputation, investment and business resilience.

Integrate ESG criteria with standards and certifications

More and more companies are integrating ESG criteria into their strategies through certificates, audits and reports. We highlight:

Ecovadis - Sustainable supply chains

The Ecovadis questionnaire for passing the Ecovadis audit incorporates ESG criteria. It is completed via the Ecovadis platform. With Ecovadis, you gain a competitive advantage with the Ecovadis certificate.

With our Ecovadis consultancy, we help you achieve the best Ecovadis medal.

SMETA assesses labour practices, health and safety, the environment, business ethics and legal compliance in the global supply chain through a SMETA audit. You must choose between SMETA 2-pillar and 4-pillar.

ESG (Environmental, Social and Governance) standards address sustainability, social responsibility, environmental management and governance. The most notable are:

E (Environmental)

  • ISO 14001 and EMAS environmental management certification.
  • GHG greenhouse gas report in accordance with
  • ISO 14064 and the GHG Protocol.
  • ISO 50001 energy management certification.
  • ISO 14046 – Water footprint.
  • ISO 14067 – Product carbon footprint.

S (Social) 

  • ISO 26001, IQNetSR10 or SGE21 Forética certification, SA8000 – Corporate social responsibility.
  • ISO 45001 Occupational Health and Safety Certificate.
  • ISO 30415 – Diversity and inclusion in people management.
  • ISO 53800 – Gender equality

G (Governance)

  • ISO 37001 – Anti-bribery management systems (Compliance).
  • ISO 27001 and/or ENS Information Security Certificate (linked to digital governance).

These standards help to structure and demonstrate ESG practices aligned with international standards.

The GRI report in accordance with GRI standards. It includes the organisation’s economic, environmental and social impacts, as well as its governance, ethics and commitment to stakeholders.

The CSRD report includes information on sustainability, environmental, social and governance impact, risks, opportunities and annual non-financial performance.

ESG FAQs

Best ESG practices for implementing a sustainability strategy

Best ESG practices involve defining clear and measurable objectives aligned with an effective sustainability strategy. To successfully apply ESG (environmental, social and governance) criteria, all stakeholders must be involved, in accordance with the context and stakeholder analysis or “materiality analysis”.

Integrating ESG strategy allows for long-term value creation and strengthens reputation. In addition, it is essential to conduct a materiality assessment to identify the issues most relevant to the business plan and stakeholders. Finally, regular reporting of ESG performance indicators (KPIs) ensures transparency, continuous improvement and compliance with international sustainability standards.

ESG (Environmental, Social and Governance) criteria are indicators that assess a company’s commitment to sustainability and social responsibility. These factors go beyond financial results and directly influence long-term performance and corporate reputation.

  • E – Environmental: Analyses how the company manages its involvement with the circular economy and environmental impact, including climate change, energy efficiency, resource use, pollution, waste management and biodiversity.
  • S – Social: Assesses labour relations, diversity, human rights, occupational health and safety, and impact on local communities.
  • G – Governance: Examines business ethics, board composition, transparency, regulatory compliance, and risk management.

Understanding ESG components through indicators or a Balanced Scorecard is essential for integrating sustainability into strategy and improving performance.

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