ESG abbreviates Environmental, Social, and Governance. Initially used by the financial sector to capture related risks, it is now used more broadly to describe environmental, social, and governance factors considered by 1) companies when managing their operations, and 2) investors when taking investment decisions, in respect of ESG risks, impacts, and opportunities.
The dialogue regarding aspects covered under the term ESG has grown significantly over the last decade (e.g. regarding what to do, what not to do and how to report). The ILO offers continued support to strengthen the social dimension of these efforts for the benefit of reducing inequalities and achieving social justice. This 2-pager briefly describes how ESG relates to the work of the ILO, particularly looking at our engagement with the financial sector.