What is ESG

ESG is used as a framework to assess how a company manages risks and opportunities that the changing market and non-market condition create.

ESG is about the ability to create and sustain long-term value in a rapidly changing world, and managing the risks & opportunities associated with these changes.

What are the ESG Factors:

    • Environmental Issues
        • Climate changes
        • Natural resource scarcity
        • Pollution and waste
    • Social Issues
        • Community engagement
        • Human capital management
        • Product safety
        • Human rights
        • Labor management
    • Governance Factors
        • Supply chain management
        • Business ethics
        • Transparency

What are the criteria for ESG?


Environmental factors involve how much an organization considers the protection of natural resources. These factors include the environment, climate change, energy consumption and use and its overall impact. Examples of environmental factors include:

  • Air and water quality
  • Biodiversity
  • Deforestation
  • Energy performance
  • Carbon footprint, including greenhouse gas emissions
  • Natural resource depletion
  • Waste management and pollution

Social factors address how an organization treats people, including these examples:

  • Community relations, including the organization’s connection and impact on the local communities in which it operates and serves
  • Customer satisfaction
  • Data protection and privacy policies and efforts
  • Efforts to fund projects or institutions that help poor and underserved communities globally
  • Employee diversity, equity and inclusion (DEI)
  • Employee engagement and relations
  • Health and safety
  • Human rights, including child labor and slavery
  • Labor standards

Governance examines how a corporation polices itself, focusing on internal system controls and practices to maintain compliance. Governance focuses on transparency, industry best practices, organization management and associated growth initiatives.
Examples of governance include:

  • Company leadership
  • Board composition, including diversity and structure
  • Corruption and bribery
  • Donations and political lobbying
  • Executive compensation and policies
  • Tax strategy, including audit committee structure, internal controls and regulatory policies
  • Whistleblower programs

Raltron and ESG


  • Reduction of electricity usage by switching from fluorescent to LED lighting
  • Reduction of air pollution by eliminating toxic chemicals
  • Reduction of water pollution by switching to non-polluting chemicals


  • Establishment of social responsibility policies
  • Health and safety protocols established
  • Human rights, including child labor and slavery policies implemented labor standards implemented


  • Company leadership management team in place