Glossary What does ESG mean?

In the financial sector, ESG stands for the additional consideration of criteria in the areas of environment, social and governance when evaluating investments:

• E: Environment – includes aspects such as environmental protection, greenhouse gas emissions and energy consumption
• S: Social – includes aspects such as occupational safety and health, diversity or social commitment
• G: Governance – this includes topics such as corporate values and culture, compliance, management and control processes (corporate governance)

Measures (excerpt from a total of 10):

• Taxonomy Regulation (see Taxonomy)
• Sustainable Finance Disclosure Regulation (SFDR) (see Disclosure Regulation)
• Corporate Sustainability Reporting Directive (CSRD): Specifications for sustainability reporting of companies are standardised
• Markets in Financial Instruments Directive (MiFID II): Requirements for marketing sustainable financial products (see MiFID II)