ESG (Environmental, Social and Governance) is a set of criteria used to assess a company's performance regarding environmental, social and governance issues.
There is a strong reason for the growing reference to ESG (Environmental, Social and Governance), starting with the certainty that a commitment to sustainability is not just a passing trend, but an urgent need in the face of global challenges, and it's here to stay.
Companies with the appropriate ESG rating don't just stand out in today's market, they reflect a fairer, more equitable and more prosperous future for generations to come. In other words, by prioritising the ESG rating, companies are investing in their success while contributing to a better planet and quality of life for all people.
What does the acronym ESG stand for?
Since ESG (Environmental, Social and Governance) is the set of criteria that measures the sustainable and ethical performance of a company or organisation, what does its acronym stand for?
E for Environmental: assesses the impact the company has on the environment, including natural resources management, the reduction of carbon emissions - if it operates, for example, in a hybrid Remote First work scheme, if it provides remote services instead of face-to-face ones - and waste treatment, to name but a few cases.
S for Social: examines how the company or organisation treats people, both internally and externally. This includes working conditions, health and safety, human rights, diversity and inclusion. This section deals with policies on gender equality, inclusion, anti-harassment and animal rights. In addition to its impact on local communities.
G for Governance: refers to the quality of the company's management and administration, addressing issues such as governance structure, ethical business practices, transparency, and corporate responsibility. In practical terms, also in line with what happens at AP | Portugal Tech Language Solutions - as mentioned before - the existence of compliance, anti-corruption, anti-fake news and denialism policies.
ESG as an x-ray
In recent years, ESG has become increasingly important for investors, companies and organisations. And there's a good reason for that. ESG reflects a more holistic and sustainable approach to assessing company performance beyond the traditional financial aspects.
"ESG allows investors to look beyond the surface, to look at the solidity of the infrastructure behind it [the company], and detect what is and isn't wrong, and that never happened before because in the past we made exclusively superficial assessments on financial indicators and measurements. ESG processes factors to observe the overall robustness, resilience and impact of the company. It's an innovation"
- Georg Kell, pioneer of the sustainability movement who first used the term ESG in 2004.
Let's look at ESG as the x-ray of a company or organisation. As such, a good ESG rating is not just an honour award, but a strategic imperative and a guarantee. Companies or organisations that value environmental, social and governance matters tend to be more resilient in the long term.
How ESG works
ESG implementation varies from company to company and by business area. However, there are some common steps and practices for incorporating ESG principles. Here are some key points:
- Risk assessment and management: identify the environmental, social and governance risks that may affect the company, as well as the risks that the company may pose to the environment and society, developing strategies to mitigate and manage those risks.
- Definition of targets and indicators: establish specific targets and indicators related to the company's environmental, social and governance performance.
- Integration in governance: adoption of ethics and compliance policies, among other practices.
- Measurement and reporting: monitor and measure the company's performance regarding ESG criteria through reports and certifications.
- Integration in investment decisions: for investors, consider ESG criteria when evaluating investment opportunities. This can involve analysing companies' environmental, social and governance performance.
The ESG rating: some notions
Words are not enough. This is why there is an ESG rating that must be taken into account. By opting for companies with a good ESG rating, such as AP | Portugal - Tech Language Solutions, you are supporting socially responsible companies and contributing to the creation of a more ethical and sustainable business environment.
As such, one can say that the ESG rating is an essential tool that helps measure and qualify companies' sustainability, leading to the best final decision. Whether by an investor or a consumer.
The ESG rating became a very relevant indicator. By assessing how a company or organisation operates and behaves in three key areas, it provides a dimension of the company's sustainable performance.
The ESG score awarded by specialised bodies, such as banks, varies according to the methodology used but, in general, a high score indicates a company that manages correctly risks related to the three aspects determined, behaving in a sustainable and responsible manner.
In short, ESG ratings provide more information on how companies are preparing for and behaving in several sustainability issues, namely diversity, transparency, water and waste management, emissions, health and safety, and much more. All included in one rating.
ABOUT US
AP | PORTUGAL is the expression of service and vision in the fields of communication technologies, event management, translation, interpretation, and audiovisual communication.
With offices in Lisbon and Porto, it is the only Portuguese company certified by both International Quality Standards ISO 17100, ISO 18587 and ISO 23155, and also by DGERT as a training entity. Internationally renowned for its skills in the areas of translation, interpretation, transcription, localization, subtitling, video production, artificial intellingence solutions and proofreading, the company is also specialized in event and conference management, audiovisual equipment rental, and VRI - Video Remote Interpreting.
The company’s intervention extends to the area of creative content production in any language, allowing AP | PORTUGAL to support companies and organizations through its Copywriting platform, also focusing on text, audio or video solutions based on Artificial Intelligence.
AP PORTUGAL includes the Artiga Center - European Centre for Amplified Events -, a facility which offers all equipment necessary for any type of event, be it hybrid, face-to-face or digital, besides being equipped for face-to-face or digital Team Building activities.
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