| | ESG (Environmental, social, and corporate governance) is a framework designed to be integrated into an organization's strategy to create enterprise value by expanding the organizational objectives to include the identification, assessment and management of sustainability-related risks and opportunities in respect to all organizational stakeholders (including but not limited to customers, suppliers and employees) and the environment Environmental aspect: focuses on preserving the natural world. Examples of topics addressed include climate change, greenhouse gas emissions, biodiversity loss, deforestation, pollution, energy efficiency and water management. Social aspect focuses on people and relationships include working to support gender and diversity, equity, and inclusion movements in addition to enhancing customer satisfaction and employee engagement. Governance aspect focuses on moving beyond how organizations have been typically governed in the past and enhance corporate governance. Examples of specific topics include board composition, cybersecurity practices, management structure, executive compensation, preventing bribery and corruption. A variety of organizations and financial institutions have devised ways to measure the extent to which a specific corporation is aligned with ESG goals. The most prominent global movement in this regards is the adoption of the Sustainable Development Goals by United Nations in 2015.The term ESG was popularly used first in a 2004 esg investing titled “Who Cares Wins", which was a joint initiative of financial institutions at the invitation of UN The report has been endorsed by 20 prominent institutions. In less than 20 years, the ESG movement has grown from a corporate social responsibility initiative launched by the Un ed Nations into a global phenomenon representing more than US$30 trillion in assets under management. In the year alone, capital totaling billion flowed into ESG-linked products, an almost 525 percent increase from according to Morningstar, Critics claim ESG linked-products have not had and are unlikely to have the intended impact of raising the cost of capital for polluting firms, and have accused the movement of greenwashing.
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