ESG (Environmental, Social, and Governance)
ESG is a framework used by investors, regulators, and organisations to evaluate corporate performance across environmental, social, and governance dimensions, with climate and emissions being central to the environmental pillar.
What is ESG (Environmental, Social, and Governance)?
ESG has become the dominant lens through which investors assess non-financial risk and performance. The environmental pillar covers climate change, emissions, energy, water, waste, and biodiversity. The social pillar covers workforce, diversity, health and safety, and community impact. The governance pillar covers board composition, ethics, transparency, and risk management. Carbon accounting is foundational to the environmental pillar, providing the data that feeds ESG ratings, investor assessments, and regulatory disclosures.
Practical Examples
An investor reviews a company’s ESG rating before making an investment decision, with Scope 1, 2, and 3 emissions being key environmental metrics.
A company improves its MSCI ESG rating from BBB to A by enhancing its carbon disclosure, setting science-based targets, and implementing a transition plan.
How Climatise Helps
Climatise provides the environmental data that underpins ESG ratings and disclosures, covering emissions, energy, and climate targets.
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