Full formBusiness & Corporate
ESGstands forEnvironmental, Social, and Governance
Full Form of ESG
What is ESG?
ESG stands for Environmental, Social, and Governance, a set of criteria used by investors, companies, and regulators to evaluate a business's sustainability and ethical impact. The environmental component assesses factors like carbon emissions, resource usage, and climate change mitigation. The social criterion covers labour practices, diversity, human rights, and community relations. Governance addresses corporate leadership, shareholder rights, transparency, and anti-corruption measures. In India, ESG has gained significant traction following the Securities and Exchange Board of India’s (SEBI) mandate for the top 1,000 listed companies to file Business Responsibility and Sustainability Reports (BRSR) from FY 2023. This framework is widely used by asset managers, mutual funds, and stock exchanges to guide responsible investing. It is also relevant for competitive exams like the CFA, CA, and UPSC where sustainability and corporate governance are key topics. ESG integration helps Indian companies align with global standards, attract foreign capital, and manage long-term risks. The term is frequently encountered in boardroom discussions, investor presentations, and policy documents. Its growing importance reflects a shift from purely financial metrics to holistic performance measurement.
ESG का फुल फॉर्म
पर्यावरणीय, सामाजिक और शासन संबंधी
Example
Many Indian mutual funds now offer ESG-focused schemes, such as the SBI Magnum ESG Fund, which invests only in companies with high Environmental, Social, and Governance scores.
ESG — frequently asked questions
What is the full form of ESG?
The full form of ESG is Environmental, Social, and Governance.
Why is ESG important for Indian companies?
ESG is important because SEBI mandates top listed firms to disclose ESG performance via BRSR, and it helps attract global capital, manage risks, and improve reputation.
How is ESG different from CSR in India?
CSR (Corporate Social Responsibility) is a legal requirement for certain companies to spend on social activities, while ESG is a broader, voluntary framework for measuring environmental, social, and governance risks and opportunities.