[[{"@context":"http:\/\/schema.org","@type":"Answer","text":"ESG stands for Environmental, Social, and Governance \u2014 three core pillars used to assess a company\u2019s impact beyond profit. The ESG framework evaluates how responsibly and transparently a business operates across sustainability, ethics, and accountability.","name":"What is ESG?","@id":"https:\/\/www.the-future-of-commerce.com\/2023\/01\/24\/what-is-esg-definition-examples-benefits\/#Answer"},{"@context":"http:\/\/schema.org","@type":"Answer","text":"Businesses are keenly aware of the need to take a stand and openly declare values, commit to action, and follow through with transparency. According to the PwC study, 91% of more than 1,200 business leaders polled believe their company has a responsibility to act on ESG issues. By developing an ESG strategy, incorporating it into corporate governance and practice, and providing regular ESG reporting, a company demonstrates how it\u2019s putting its words into real action.","name":"Why is ESG important?","@id":"https:\/\/www.the-future-of-commerce.com\/2023\/01\/24\/what-is-esg-definition-examples-benefits\/#Answer1"},{"@context":"http:\/\/schema.org","@type":"Answer","text":"ESG stands for Environmental, Social, and Governance. It\u2019s a framework used to assess a company's operations and values beyond profit, including its impact on people, the planet, and its own leadership practices.","name":"What does ESG stand for in business?","@id":"https:\/\/www.the-future-of-commerce.com\/2023\/01\/24\/what-is-esg-definition-examples-benefits\/#Answer2"},{"@context":"http:\/\/schema.org","@type":"Answer","name":"Is ESG the same as sustainability?","text":"Not quite. ESG is a measurable framework used to evaluate specific practices and risks, while sustainability is a broader goal related to long-term environmental, social, and economic well-being. ESG provides the tools to operationalize and report on sustainability.","@id":"https:\/\/www.the-future-of-commerce.com\/2023\/01\/24\/what-is-esg-definition-examples-benefits\/#Answer3"},{"@context":"http:\/\/schema.org","@type":"Answer","name":"What is an example of ESG in action?","text":"A company using renewable energy, maintaining a diverse board of directors, and ensuring fair labor conditions in its supply chain is applying ESG principles across all three pillars.","@id":"https:\/\/www.the-future-of-commerce.com\/2023\/01\/24\/what-is-esg-definition-examples-benefits\/#Answer4"},{"@context":"http:\/\/schema.org","@type":"Answer","text":"ESG reporting provides transparency into a company\u2019s environmental and social impact. It helps investors and stakeholders assess performance, trustworthiness, and alignment with ethical or regulatory standards.","name":"Why is ESG reporting important?","@id":"https:\/\/www.the-future-of-commerce.com\/2023\/01\/24\/what-is-esg-definition-examples-benefits\/#Answer5"},{"@context":"http:\/\/schema.org","@type":"Answer","text":"Regulations vary by region. In the U.S., the SEC has proposed climate-related disclosure rules. Globally, frameworks like GRI, SASB, and TCFD are commonly used for voluntary reporting \u2014 though some jurisdictions are moving toward mandatory ESG disclosures.","name":"Who regulates ESG disclosures?","@id":"https:\/\/www.the-future-of-commerce.com\/2023\/01\/24\/what-is-esg-definition-examples-benefits\/#Answer6"},{"@context":"http:\/\/schema.org","@type":"Answer","name":"Does ESG improve financial performance?","text":"Yes, numerous studies (including <a href=\"https:\/\/www.mckinsey.com\/~\/media\/McKinsey\/Business%20Functions\/Strategy%20and%20Corporate%20Finance\/Our%20Insights\/Five%20ways%20that%20ESG%20creates%20value\/Five-ways-that-ESG-creates-value.ashx\">this McKinsey report<\/a>) show that ESG-aligned companies often outperform in the long run. They tend to manage risk better, attract top talent, and open new market opportunities.","@id":"https:\/\/www.the-future-of-commerce.com\/2023\/01\/24\/what-is-esg-definition-examples-benefits\/#Answer7"},{"@context":"http:\/\/schema.org","@type":"Answer","name":"Is ESG just for large corporations?","text":"No. ESG principles can be applied by businesses of any size. While reporting requirements often apply to larger firms, small and medium businesses also benefit from adopting ESG as a way to attract customers, partners, and investors.","@id":"https:\/\/www.the-future-of-commerce.com\/2023\/01\/24\/what-is-esg-definition-examples-benefits\/#Answer8"},{"@context":"http:\/\/schema.org","@type":"Answer","text":"Absolutely. Companies that authentically live their ESG values build stronger brand equity, customer loyalty, and resilience during reputational challenges or crises.","name":"Can ESG help with brand reputation?","@id":"https:\/\/www.the-future-of-commerce.com\/2023\/01\/24\/what-is-esg-definition-examples-benefits\/#Answer9"},{"@context":"http:\/\/schema.org","@type":"BlogPosting","about":["https:\/\/www.the-future-of-commerce.com\/2023\/01\/24\/what-is-esg-definition-examples-benefits\/#About",{"@type":"Thing","name":"Environmental, social, and corporate governance","@id":"https:\/\/en.wikipedia.org\/wiki\/Environmental,_social,_and_corporate_governance#Thing"},{"@type":"Thing","name":"environmental, social and corporate governance (Q3817465)","@id":"https:\/\/www.wikidata.org\/wiki\/Q3817465#Thing"},{"@type":"Thing","name":"Social responsibility","@id":"https:\/\/en.wikipedia.org\/wiki\/Social_responsibility#Thing"}],"url":"https:\/\/www.the-future-of-commerce.com\/2023\/01\/24\/what-is-esg-definition-examples-benefits\/","mainEntityOfPage":"https:\/\/www.the-future-of-commerce.com\/2023\/01\/24\/what-is-esg-definition-examples-benefits\/","description":"Driven by consumer and investor demand, ESG has become a priority for businesses today. Learn what it means, and see examples of real-world benefits.","name":"What is ESG: Definition, examples, benefits","headline":"What is ESG: Definition, examples, benefits","dateModified":"2025-06-09","datePublished":"2023-01-24","subjectOf":{"@type":"FAQPage","url":"https:\/\/www.the-future-of-commerce.com\/2023\/01\/24\/what-is-esg-definition-examples-benefits\/","name":"What is ESG","about":[{"@type":"Thing","name":"Corporate social responsibility","@id":"https:\/\/en.wikipedia.org\/wiki\/Corporate_social_responsibility"},"https:\/\/en.wikipedia.org\/wiki\/Social_responsibility","https:\/\/www.the-future-of-commerce.com\/2023\/01\/24\/what-is-esg-definition-examples-benefits\/#About","https:\/\/en.wikipedia.org\/wiki\/Environmental,_social,_and_corporate_governance","http:\/\/www.wikidata.org\/entity\/Q3817465"],"mainEntity":[{"@type":"Question","name":"What is ESG?","acceptedAnswer":{"@id":"https:\/\/www.the-future-of-commerce.com\/2023\/01\/24\/what-is-esg-definition-examples-benefits\/#Answer"},"@id":"https:\/\/www.the-future-of-commerce.com\/2023\/01\/24\/what-is-esg-definition-examples-benefits\/#Question"},{"@type":"Question","name":"Why is ESG important?","acceptedAnswer":{"@id":"https:\/\/www.the-future-of-commerce.com\/2023\/01\/24\/what-is-esg-definition-examples-benefits\/#Answer1"},"@id":"https:\/\/www.the-future-of-commerce.com\/2023\/01\/24\/what-is-esg-definition-examples-benefits\/#Question1"},{"@type":"Question","name":"What does ESG stand for in business?","acceptedAnswer":{"@id":"https:\/\/www.the-future-of-commerce.com\/2023\/01\/24\/what-is-esg-definition-examples-benefits\/#Answer2"},"@id":"https:\/\/www.the-future-of-commerce.com\/2023\/01\/24\/what-is-esg-definition-examples-benefits\/#Question2"},{"@type":"Question","name":"Is ESG the same as sustainability?","acceptedAnswer":{"@id":"https:\/\/www.the-future-of-commerce.com\/2023\/01\/24\/what-is-esg-definition-examples-benefits\/#Answer3"},"@id":"https:\/\/www.the-future-of-commerce.com\/2023\/01\/24\/what-is-esg-definition-examples-benefits\/#Question3"},{"@type":"Question","name":"What is an example of ESG in action?","acceptedAnswer":{"@id":"https:\/\/www.the-future-of-commerce.com\/2023\/01\/24\/what-is-esg-definition-examples-benefits\/#Answer4"},"@id":"https:\/\/www.the-future-of-commerce.com\/2023\/01\/24\/what-is-esg-definition-examples-benefits\/#Question4"},{"@type":"Question","name":"Why is ESG reporting important?","acceptedAnswer":{"@id":"https:\/\/www.the-future-of-commerce.com\/2023\/01\/24\/what-is-esg-definition-examples-benefits\/#Answer5"},"@id":"https:\/\/www.the-future-of-commerce.com\/2023\/01\/24\/what-is-esg-definition-examples-benefits\/#Question5"},{"@type":"Question","name":"Who regulates ESG disclosures?","acceptedAnswer":{"@id":"https:\/\/www.the-future-of-commerce.com\/2023\/01\/24\/what-is-esg-definition-examples-benefits\/#Answer6"},"@id":"https:\/\/www.the-future-of-commerce.com\/2023\/01\/24\/what-is-esg-definition-examples-benefits\/#Question6"},{"@type":"Question","name":"Does ESG improve financial performance?","acceptedAnswer":{"@id":"https:\/\/www.the-future-of-commerce.com\/2023\/01\/24\/what-is-esg-definition-examples-benefits\/#Answer7"},"@id":"https:\/\/www.the-future-of-commerce.com\/2023\/01\/24\/what-is-esg-definition-examples-benefits\/#Question7"},{"@type":"Question","acceptedAnswer":{"@id":"https:\/\/www.the-future-of-commerce.com\/2023\/01\/24\/what-is-esg-definition-examples-benefits\/#Answer8"},"name":"Is ESG just for large corporations?","@id":"https:\/\/www.the-future-of-commerce.com\/2023\/01\/24\/what-is-esg-definition-examples-benefits\/#Question8"},{"@type":"Question","name":"Can ESG help with brand reputation?","acceptedAnswer":{"@id":"https:\/\/www.the-future-of-commerce.com\/2023\/01\/24\/what-is-esg-definition-examples-benefits\/#Answer9"},"@id":"https:\/\/www.the-future-of-commerce.com\/2023\/01\/24\/what-is-esg-definition-examples-benefits\/#Question9"}],"@id":"https:\/\/www.the-future-of-commerce.com\/2023\/01\/24\/what-is-esg-definition-examples-benefits\/#FAQPage"},"image":{"@type":"ImageObject","url":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2023\/01\/What-is-ESG-FTR.jpg","height":375,"width":1200,"@id":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2023\/01\/What-is-ESG-FTR.jpg"},"author":{"@type":"Person","image":{"@type":"ImageObject","url":"https:\/\/secure.gravatar.com\/avatar\/7fb10922098dc372c3e55b17c006086c?s=96&d=mm&r=g","height":96,"width":96,"@id":"https:\/\/secure.gravatar.com\/avatar\/7fb10922098dc372c3e55b17c006086c?s=96&d=mm&r=g"},"url":"https:\/\/www.the-future-of-commerce.com\/contributor\/geert-leeman\/","name":"Geert Leeman","description":"Geert Leeman is Chief Operating Officer of SAP Customer Experience, and is responsible for the global sales strategy and go-to-market global operations for SAP\u2019s Customer Experience organization, serving more than 10,000 customers across the globe.  The SAP Customer Experience portfolio is market-leading and encompasses solutions that support our customer\u2019s business across 5 key pillars: Omni-channel Commerce, Digital Marketing, Customer Data Platforms, Sales Performance, and Service Excellence.  Geert joined SAP in 2001 and held several senior roles in Solution Management, Business Development and Key Account Management. Before joining SAP Customer Experience, Geert was the Managing Director for the SAP-Nestl\u00e9 Global Alliance [one of the largest and most important businesses in his region] and is a member of SAP\u2019s Global Leadership team. He is passionate about helping SAP\u2019s most strategic accounts grow revenue and drive innovation. He has worked with many of these accounts throughout his tenure at SAP to define and implement exceptional and engaging customer experiences.  A CRM veteran with over 20 years\u2019 experience in the customer-facing solutions space, Geert is focused on driving growth for both customers and consumers. Prior to joining SAP, Geert was a Management Consultant for CSC, within the manufacturing industries across Europe, focusing on sales and logistics.  He holds a Master\u2019s Degree in Business from the University of Brussels and a Master\u2019s Degree in Information Technology Management (DESS SIAD) from the University of Lille.","sameAs":"https:\/\/www.linkedin.com\/in\/geertleeman\/","identifier":636,"@id":"https:\/\/www.the-future-of-commerce.com\/contributor\/geert-leeman\/#Person"},"publisher":{"@type":"Organization","logo":{"@type":"ImageObject","url":"https:\/\/www.the-future-of-commerce.com\/wp-content\/themes\/hybris_foc\/assets\/images\/layout\/logo-foc-2x.svg","height":"96","width":"293","@id":"https:\/\/www.the-future-of-commerce.com\/wp-content\/themes\/hybris_foc\/assets\/images\/layout\/logo-foc-2x.svg"},"address":{"@type":"PostalAddress","name":"The Future of Commerce","addressCountry":"https:\/\/www.the-future-of-commerce.com\/#Country","addressLocality":"Newtown Square","addressRegion":"PA","postalCode":"19073","streetAddress":"3999 West Chester Pike","@id":"https:\/\/www.the-future-of-commerce.com\/#PostalAddress"},"url":"https:\/\/www.the-future-of-commerce.com\/","alternateName":"The Future of Commerce and Customer Engagement","additionalType":"news media","name":"The Future of Commerce","description":"News, information, and analysis on the future of commerce, including e-commerce, customer engagement, B2B, B2C, DTC, supply chain, sustainability, and purpose.","sameAs":["https:\/\/www.linkedin.com\/groups\/4844282","https:\/\/podcasts.apple.com\/us\/podcast\/a-call-for-a-better-experience\/id1479742201","https:\/\/twitter.com\/FutureOfCEC","https:\/\/www.the-future-of-commerce.com\/feed\/"],"contactPoint":"https:\/\/www.the-future-of-commerce.com\/#ContactPoint","legalName":"The Future of Commerce","parentOrganization":"https:\/\/www.sap.com\/index.html#Organization","numberOfEmployees":"https:\/\/www.the-future-of-commerce.com\/#QuantitativeValue","@id":"https:\/\/www.the-future-of-commerce.com\/"},"@id":"https:\/\/www.the-future-of-commerce.com\/2023\/01\/24\/what-is-esg-definition-examples-benefits\/#BlogPosting"},{"@context":"http:\/\/schema.org","@type":"SpeakableSpecification","mainEntityOfPage":"https:\/\/www.the-future-of-commerce.com\/2023\/01\/24\/what-is-esg-definition-examples-benefits\/","url":"https:\/\/www.the-future-of-commerce.com\/2023\/01\/24\/what-is-esg-definition-examples-benefits\/","name":"What does ESG stand for?","xpath":"\/\/span[@id=\"what-does-esg-stand-for\"]","@id":"https:\/\/www.the-future-of-commerce.com\/2023\/01\/24\/what-is-esg-definition-examples-benefits\/#SpeakableSpecification"},{"@context":"http:\/\/schema.org","@type":"WebPage","speakable":{"@id":"https:\/\/www.the-future-of-commerce.com\/2023\/01\/24\/what-is-esg-definition-examples-benefits\/#SpeakableSpecification"},"about":["http:\/\/www.wikidata.org\/entity\/Q3817465","https:\/\/en.wikipedia.org\/wiki\/Environmental,_social,_and_corporate_governance","https:\/\/www.the-future-of-commerce.com\/2023\/01\/24\/what-is-esg-definition-examples-benefits\/#About"],"name":"What is ESG: Definition, examples, benefits","url":"https:\/\/www.the-future-of-commerce.com\/2023\/01\/24\/what-is-esg-definition-examples-benefits\/","abstract":"For companies seeking the business of values-led consumers as well as the support of investors, developing an ESG strategy has become a priority. But what is ESG, and why is it so important?  Growing numbers of consumers and investors evaluate brands based on their environmental and social values. ESG policies and practices demonstrate a company\u2019s values, commitment to action, and transparency.","@id":"https:\/\/www.the-future-of-commerce.com\/2023\/01\/24\/what-is-esg-definition-examples-benefits\/#WebPage"}],{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"2023","item":"https:\/\/www.the-future-of-commerce.com\/2023\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"01","item":"https:\/\/www.the-future-of-commerce.com\/2023\/\/01\/#breadcrumbitem"},{"@type":"ListItem","position":3,"name":"24","item":"https:\/\/www.the-future-of-commerce.com\/2023\/\/01\/\/24\/#breadcrumbitem"},{"@type":"ListItem","position":4,"name":"What is ESG: Definition, examples, benefits","item":"https:\/\/www.the-future-of-commerce.com\/2023\/01\/24\/what-is-esg-definition-examples-benefits\/#breadcrumbitem"}]}]