For a company, sustainability means operating in a way that ensures profitability without compromising future generations' ability to meet their needs. This entails adhering to Environmental, Social, and Governance (ESG) reporting and aligning business practices with the United Nations' Sustainable Development Goals (SDGs), ensuring a balance of economic success, social equity, and environmental stewardship.
ESG stands for Environmental, Social, and Governance, referring to the three key factors used to measure a company's sustainability and ethical impact. Investors increasingly use ESG criteria to assess potential investments, aiming to support businesses that are environmentally responsible, socially conscious, and adhere to ethical governance practices. ESG investing aims to promote long-term value creation while addressing global challenges like climate change and social inequality.
Carbon credits are tradable certificates that represent the reduction or removal of one metric ton of carbon dioxide equivalent (CO2e) from the atmosphere. They are used in cap-and-trade systems, where companies or countries have emissions limits and can buy or sell credits to meet these targets. Carbon credits incentivize reducing greenhouse gas emissions and investing in clean technologies, while allowing flexibility in meeting environmental goals.