Glossary What does ESG mean?

ESG (Environment, Social, Governance)

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)