ESG

What does ESG stand for in business?

Environment, Social, and Governance

ESG is a business acronym that refers to standards for a company's conduct regarding environmental, social, and governance matters. For example, ESG may call for a company to evaluate how much pollution their factories produce, if they employ non-discriminatory hiring practices, and the diversity among their board.

Here are examples of issues that fall into each category of ESG:

  • Environment - Energy efficiency, climate change risk, recycling sustainability, and water management.
  • Social - Working conditions, human rights, local community impact, employee benefits, and diversity, equity, and inclusion (DEI).
  • Governance - Business governing ethics, board diversity, shareholder democracy, anti-corruption measures, and executive compensation.

Since 2020, ESG has become a significant (and controversial) factor regarding company conduct and how investors view companies. You will most likely see or hear ESG discussed in business contexts online, on TV, and in real life (IRL). You may also encounter it in political contexts, with liberals typically supporting ESG standards and conservatives criticizing them.

Example

Can you send me the ESG scores for the prospective companies by the EOD?
Sure thing. I should have them to you by noon
ESG stands for Environment, Social, and Governance
ESG stands for Environment, Social, and Governance

Related Slang

DEIDiversity, equity, and inclusion
WokeAware of social issues
Tree huggerA person who cares about the environment
Eco-dumpingDumping a person because of their environmental views
SJWSocial Justice Warrior
Virtue signalingDemonstrating moral superiority
Performative allyshipAllyship that is performed to gain social standing
CRTCritical Race Theory
EODEnd of day
IRLIn real life

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Updated March 28, 2023

ESG definition by Slang.net

This page explains what the acronym "ESG" means. The definition, example, and related terms listed above have been written and compiled by the Slang.net team.

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