SIMPLEST VERSION OF ESG

By: Harish Gupta

Recently, the term ESG has been blossoming across various platforms, becoming a focal point of discussions in both corporate circles and societal segments. It has found its way into boardroom discussions, corporate governance reports, webinars, press releases, blogs, newspapers, and even government policies. The concept of "ESG" might seem intriguing, yet for many, it remains unfamiliar, overlooked, or simply not a matter of concern. I believe it's high time we demystify ESG, presenting it in a straightforward manner and illustrating its relevance in our everyday lives.

What the term ESG stand for?

Term “ESG” is simply a combination of 3 words - Environment + Social + Governance

The three components in the term ESG inherently suggest a connection to aspects such as nature, climate, human behavior, society, equality, growth, socialism, development, industry, and innovation etc.

Environment is related to Nature: emphasis on conservation of natural world, eco-system

Social is related to People: emphasis on human life well-being&connection

Governance is related to Process: emphasis on equal& ethical development support

Air, Water, Energy, Natural Resources, Soil, Natural Eco-System, Biodiversity, etc.

Peace, Socialism, Equality, Family, Love, Care, Human Life, Zero Poverty, People, etc.

Innovation, Growth, Development, Partnerships, Legality, Fair Practices, Justice,

ESG is Connected to Every Individual Life

ESG has impacted all of us in some way, making it crucial for us to comprehend how it intersects with each of our lives.

ESG affects every person, regardless of their business, occupation, region, gender, status, or age. It touches everyone who interacts with or is involved in any of the three components—environment, social, or governance—in any capacity.

Institutional Level

 Is it possible to manufacture any product without availability of NATURE - Air, Water, Natural Resources, Energy

 Is it possible to model an organisation without having PEOPLE - Employees, Vendors, Supply Chain, Customers

 Is it possible to succeed any business model without establishing good GOVERNANCE - Equality, Ethical Partnerships, Infrastructure Support, Innovation, Growth, Peace, Justice, zero corruption

Individual Level

 Is it possible for any human life to exists without availability ofNATURE - Air, Water, Natural Resources, Energy

 Is it possible for any individual to survive alone, without being surrounded byPEOPLE -family, society, other life, other humans

 Is it possible for humankind to think of development and growth without establishing good GOVERNANCE - Education, Transport, Medical Facility, Peace, Justice, Equal Opportunity, zero corruption

ESG and Sustainability

ESG is recognized in various ways and labelled differently depending on the audience's perspective.

Sustainability, Sustainable Development, Business Responsibility, Sustainable Future, Green Investment, Sustainable or Responsible Investment, Circular Economy, Net Zero Carbon Emission, Carbon Footprint, Sustainable Lifestyle, Etc - all of these falls under the umbrella of ESG.

For Institutions, Business  Corporate Sustainability

Corporates Making “Profits with Purpose”; Purpose is to take care of nature, people and adopting good governance, ethical business practices

For Individual Human Life  Sustainable Lifestyle

Individuals Living Today for Future; Having lifestyle that meets today’s need without effecting future survival.