During the process of conducting extensive research on ESG, we have encountered many unfamiliar terms. The terms like ‘CSR’ and ‘sustainability management’ have frequently appeared on various reports and websites.
We further researched about the difference between ESG and CSR. At first, they both seemed to have a similar meaning. Both include corporates’ social activities that enterprises do other than only pursuing profits. And, we wondered, “Why did people start to pay more attention to ESG around 2020?”
The answer was because of ‘Investment’. The whole world experienced major changes due to the pandemic, and the enterprise’s responsiveness became more important than ever before. Domestic and overseas financial institutions began to declare that they would consider ESG management to be a critical standard of their corporate investment portfolio. As a result, many firms that would like to get investments started to adopt ESG management.
Unlike CSR, ESG focuses on evaluating the enterprise’s non-financial activities based on quantitative numbers. Overall, ESG, which could be seen as a more advanced concept of CSR, will challenge enterprises to do more good for societies.