esg-criteria

Vocabulary Word

Definition

'ESG criteria' represents guidelines to evaluate a company's impact on our world and society. They help us understand how a company is contributing to a better environment, treating people, and managing itself.

Examples in Different Contexts

In corporate strategy, 'ESG criteria' influence business practices and decision-making to ensure long-term sustainability. A CEO might explain, 'Adopting ESG criteria into our business model helps us address stakeholder concerns and drive sustainable growth.'

Practice Scenarios

Impact

Scenario:

This green-energy startup seems promising. However, we need to ensure their operations also reflect a commitment to social responsibility.

Response:

Agreed, we should examine their ESG criteria thoroughly to make sure they're truly operating sustainably and ethically.

Business

Scenario:

The company’s performance last quarter was impressive. However, we should consider more than just financial viability before investing.

Response:

Absolutely, let's look into their ESG criteria to understand their environmental and social impact and how they are governed.