Page 196 - ΝΑΥΤΙΚΑ ΧΡΟΝΙΚΑ - ΟΚΤΩΒΡΙΟΣ 2024

Τhrough a seafarer's eyes

HORIZON

FROM

THE

BRIDGE

by Capt. George Georgoulis

ESG: A FRAMEWORK TO BALANCE PROFIT manages relationships with employees,
WITH PURPOSE suppliers, customers, and the communi-
Environmental, Social, and Governance (ESG) is ties in which it operates. Issues like labour
more than a buzzword in today’s corporate world. practices, employee well-being, diversity
It represents a set of criteria that companies and and inclusion, emotional intelligence, and
investors use to evaluate the ethical impact and human rights are central to this pillar.
sustainability of businesses. As society increasingly Governance: Governance focuses on a company’s
demands greater accountability from corporations, leadership, executive pay, internal controls,
ESG metrics are becoming a critical part of deci- shareholder rights, and ethical business
sion-making processes for investors, regulators, and practices. Good governance ensures trans-
businesses alike. parency, fairness, and accountability, all of
ESG is an investment approach that focuses on three which build long-term trust and stability.
main areas: While ESG factors were once considered separate
Environmental: This aspect assesses how a compa- from financial performance, it has become evi-
ny’s operations impact the environment. dent that they can significantly impact a compa-
Factors such as carbon emissions, waste ny's profitability and risk profile. Companies with
management, energy efficiency, and the strong ESG practices are viewed as more resilient,
use of renewable resources fall under this capable of managing risks, and better positioned
category. Companies that take proactive for long-term success.
measures to minimise their environmental The demand for transparency and standardisation
footprint are often considered more sus- in ESG reporting has surged, leading to the devel-
tainable. opment of various frameworks to guide companies
Social: The social aspect evaluates how a company in disclosing their ESG practices. Investors, reg-

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