ESG (Environmental, Social, and Governance) and sustainability are interconnected frameworks that guide businesses in operating responsibly and ethically. ESG focuses on non-financial factors: environmental impact (e.g., carbon emissions, resource efficiency), social responsibility (e.g., labor practices, community engagement), and governance (e.g., corporate ethics, transparency). Sustainability encompasses broader goals, including long-term environmental stewardship, social equity, and economic viability.
While ESG provides a reporting framework for assessing current and past performance, sustainability drives proactive measures to reduce negative impacts and foster positive change. Together, they help businesses attract socially conscious investors, comply with regulations, and contribute to a sustainable future.
