A Study Of Environmental, Social And Governance (ESG): The Evolving Metrics Considering People And Planet

Abstract

There is global call for sustainable development that looks beyond the profitability and wealth maximization. Corporates around the world are becoming diligent to measure their nonfinancial performance that helps in coordinated development and attract socially responsible investors. Environmental, Social and Governance (ESG) are the metrics that scores the collective conscientiousness of the business towards of environment, social and governance factors. However, it is not only a scale but a value driven growth rating which considers societies and environment while carrying out the business operations. This study presents a comprehensive summary related to theoretical aspects of ESG, its dimension and role in attracting investors, indicators used in ESG rating, its impact and importance along with rating criterion. In order to review and summarize the concept of ESG the study relies on the literature from secondary sources.