What is ESG?

ESG stands for the three criteria used to measure a company’s impact on society and the environment: environmental, social and governance. 

  • ‘Environmental’ encompasses things like waste, pollution, resource depletion, deforestation, climate change, greenhouse gas emissions and water use.

  • ‘Social’ encompasses working conditions, employee relations, diversity, local communities, health and safety, and security, for example.

  • ‘Governance’ entails shareholder rights, board diversity, executive remuneration, donations, corruption and bribery, and risk management, among other things.

How does ESG work?

ESG has become the standard for determining the future performance of company. ESG rankings evaluate public companies based on environmental, social, and governance factors. Unlike CSR, which promotes corporate accountability, ESG provides measurable metrics to predict a company’s future performance and investment risk. 

Companies report on ESG scorecards to benchmark against peers and attract investment. Scores consider criteria such as employee treatment, climate crisis response and community relations.

What are the benefits of ESG?

ESG is a useful tool for measuring social and environmental projects. Stahl publishes an annual ESG Report (view the 2022 ESG Report) that shows the progress the company has made in terms of ESG. The report includes data on topics such as worker safety, climate action, diversity, human rights and training. 

What is the future of ESG?

Stahl recognises its fundamental role as a business, providing products and services to paying customers. But we also recognise that lasting success is rooted in sustainability. Indeed, ESG is vital for Stahl because it quantifies our commitment to a sustainable future. We are dedicated to monitoring and reporting our progress in ESG to ensure that we make wise decisions that benefit our company and the wider industry. ESG will remain a cornerstone in guiding our strategy and shaping our impact. 

Not done learning?
Take a look at our ESG Roadmap to 2030 to learn more about Stahl's commitment to sustainable development.