ESG criteria are a set of environmental, social, and corporate governance elements that must be identified, measured, informed, and disclosed by a company through a metrics system, and which are considered by investors when making their investment decisions.
Environmental
The environmental factor focuses on the relationship between business activity and the environment, including aspects such as the measuring and mitigation of greenhouse gases, controlled consumption of certain natural resources, practices that prevent water and soil pollution, and the mitigation of biodiversity losses in ecosystems, deforestation, or the transition towards a circular economy.
Social
The social factor is aimed at taking into account the repercussions that activities conducted by a company have on the community, to which ends indicators such as inequality and social inclusion, labor relations, investment in human capital -through retainment and training,- the protection of local and indigenous communities, and the preservation of cultural heritage, are considered.
Governance
Governance The governance factor analyses the impact that the way in which a company is organized, the administration of the entity and shareholders themselves have for the purposes of taking care of, and fostering, shareholder rights, information transparency, the promotion of good practices, and the fight against corruption and fraud, among others; it is deemed essential for the correct follow-up, measuring, and disclosure of the environmental and social factors, as well as for the adoption of mitigating measures that require mid- and long-term efforts.