What Is ESG Management and Why It Matters
ESG management is a holistic approach in incorporating ESG factors into business
decision-making. A framework to understand and measure how sustainably a business operates, it involves
setting targets, monitoring performance, and reporting on progress. More than ever before, there is a
growing recognition of the need to move beyond compliance to a more strategic approach that can create value
for the business and its stakeholders.
ESG risk can impact an organization’s financial performance. An ESG risk
management software can help organizations to protect and enhance value by identifying, assessing, and
managing risks that could adversely impact their ESG performance. Strong ESG ratings have emerged as a key
competitive differentiator by investors.