ESG can be defined as a risk management and investment framework that seeks to evaluate the financial risks that environmental (E), social (S), and governance (G) factors pose for a company’s value, i.e. what is the impact on the company's performance of ESG factors.
When we talk about sustainability, the focus is on the impact an organization has on the planet and society.
(Responsible) Leadership demands integration of ESG and sustainability i.e., organizations do not care only about how environmental, social justice and governance (ESG) issues affect the bottom line, but they are also concerned how their operations affect the planet and society.
