Oftentimes, three-letter acronyms trend and become buzzwords. At other times, they act as catalysts by influencing the business environment in which an organization operates. Such acronyms include CSR (corporate social responsibility), GRC (governance, risk, and compliance), and the most recent one, ESG (environmental, social, and governance). These are important business concepts that drive investment considerations and organizations’ cybersecurity commitments to customers. A common factor amongst CSR, GRC, and ESG is the role of governance in steering an organization’s vision, mission, and operations. Governance provides a structure to improve decision making and utilization of resources to achieve objectives.
Understanding ESG
Though ESG gained traction within the last 2 years and became a major investment consideration, it evolved from a 2004 initiative by the United Nations in cooperation with the International Finance Corporation (IFC) and the Swiss government to integrate environmental and social factors in corporate governance. The central idea of ESG as an investment framework is that by incorporating environmental and social policies in corporate…
