Corporate Social Responsibility (CSR) is the measurement of how a corporation's activity

impacts the society, it usually indicates that beside pursuing profitability, a company also
supports social and environmental causes.
Environmental, Social, and Governance (ESG) is an umbrella term that refers to specific
data designed to be used by investors for evaluating the material risk that the organization is
taking on based on the externalities it is generating.

CSR aims to make organizations accountable for their larger societal responsibilities, but
these activities and their impact are not really measurable. There are also fewer governance
measures pertaining to CSR.

ESG criteria take the CSR agenda one step further to integrate environmental and social
responsibility into core corporate strategy along with a strong governance framework.

CSR VS ESG
auto manufacturer’s CSR drive could have their employees cleaning trash from city roads or
embarking on an afforestation drive in their community. But their ESG policy would require
them to make a firm commitment to planting a million trees by 2030 or ensuring a 25 percent
increase in usage of recycled material in their manufacturing process.

How to use ESG strategically:

1. Create ESG team

From becoming a more sustainable business, to developing community outreach

programmes, it can pay to assemble a team of employees to own the ESG programme.

Look for employees who are passionate about change, effective communicators, and in
positions in your organisation where they can bring about changes.

Give the team accountability for ESG targets and access to resources to be able to meet
ESG goals

2. Dont forget the Supply Chain

Involve procurement staff in your ESG strategy and share company values that you'd also
expect from suppliers.

A critical part of ESG is governance, so encourage employees to regularly vet, assess, and
monitor suppliers to ensure they meet your ethical, social, and environmental goals.

Consider putting policies and contracts in place for new suppliers that commit to providing
evidence of good practices, such as minimum thresholds for employee working conditions or
only using sustainable materials.

3. Invest in ESG
One of the risks of an ESG strategy failing to take-off can be a lack of resources.

While ESG might seem like a costly activity, it can lead to cost savings such as lower energy
bills or reduced recruitment costs and even increased turnover due to more sales.
Calculate where resources can have the most impact on ESG goals and work out where
these improvements can either save your business money, or have the potential to grow
cash.

You can use these calculations to help determine how much resource to allocate and to
which parts of your ESG programme.

企業社會責任（CSR）是衡量企業活動如何影響社會的指標，通常表明企業除了追求盈利能力
外，還支持社會和環境事業。

環境、社會和治理 (ESG) 是一個總括性術語，指的是旨在供投資者根據其產生的外部性評估

組織所承擔的重大風險的特定數據。

企業社會責任旨在讓組織對其更大的社會責任負責，但這些活動及其影響並不是真正可衡量
的。 與企業社會責任相關的治理措施也較少。

ESG 標準將企業社會責任議程向前推進了一步，將環境和社會責任與強大的治理框架一起
納入核心企業戰略。

企業社會責任與 ESG

汽車製造商的企業社會責任活動可以讓他們的員工清理城市道路上的垃圾或在他們的社區
開展植樹造林活動。 但他們的 ESG 政策將要求他們做出堅定承諾，到 2030 年種植 100 萬棵
樹，或確保在製造過程中增加 25% 的回收材料使用量。

如何戰略性地使用 ESG：

- 創建 ESG 團隊

從成為一家更具可持續性的企業到開發社區外展計劃，組建一支員工團隊來擁有 ESG 計劃
是值得的。尋找對變革充滿熱情的員工、有效的溝通者，以及在組織中能夠帶來變革的職位。
讓團隊對 ESG 目標負責並獲得資源以實現 ESG 目標。

- 不要忘記供應鏈

讓採購人員參與您的 ESG 戰略，並分享您也期望供應商提供的公司價值觀。

ESG 的一個關鍵部分是治理，因此鼓勵員工定期審查、評估和監控供應商，以確保他們滿足
您的道德、社會和環境目標。
考慮為承諾提供良好實踐證據的新供應商制定政策和合同，例如員工工作條件的最低門檻或
僅使用可持續材料。

- 投資於 ESG

ESG 戰略未能起飛的風險之一可能是缺乏資源。

雖然 ESG 似乎是一項成本高昂的活動，但它可以節省成本，例如降低能源費用或降低招聘
成本，甚至因銷售額增加而增加營業額。

計算哪些資源可以對 ESG 目標產生最大影響，並找出這些改進可以節省您的業務資金或有

可能增加現金的地方。

您可以使用這些計算來幫助確定要分配多少資源以及分配給 ESG 計劃的哪些部分。

FOCUS ON ESG INSTEAD OF CSR