ESG - What It Really Means and Why You Can’t Ignore It
Dr. Sham Razak
2 June 2025
You’ve probably heard the term ESG thrown around a lot lately.
It shows up in annual reports, investor briefings, supplier contracts—even in job descriptions.
But what does ESG really mean?
And why is it suddenly everywhere?
Let’s break it down:
-
E stands for Environmental.
This includes how a business impacts the planet: energy use, emissions, waste, resource management, climate risk. -
S is for Social.
This is about people: how a company treats employees, supports communities, ensures safety, and upholds human rights. -
G is for Governance.
Think leadership, transparency, accountability, anti-corruption measures, and how decisions are made.
In short, ESG is a way to look at business performance beyond just profit.
It’s about how companies manage risk, respond to societal expectations, and build long-term value.
So why does it matter?
Because ESG is quickly becoming the language of modern business.
- Investors use ESG data to decide where to put their money.
- Governments are rolling out ESG-related regulations.
- Employees and consumers are paying attention to what businesses stand for.
For companies, this means ESG is no longer something that can be left to a small team in a corner.
It’s becoming core to strategy, reputation, and resilience.
But here’s the catch
Many professionals still feel unsure about what ESG actually involves—or how it connects to their role.
Clarity leads to confidence
We’ve seen it time and again: when people finally "get" ESG, they begin to:
- Ask better questions
- See new risks
- Spot unexpected opportunities
Understanding ESG helps teams:
- Speak the same language
- Align with global expectations
- Make more responsible, future-ready decisions
And it all starts with awareness.
If you're trying to build that foundational understanding across your team or organisation,
our self-paced programme offers a simple starting point—designed to break things down clearly, without the jargon.
Because once ESG makes sense, so does everything that follows.