EHS & ESG

EHS and ESG are both acronyms used in the context of corporate sustainability and responsibility.

EHS stands for Environmental, Health, and Safety,

ESG stands for Environmental, Social, and Governance.

EHS refers to the policies and practices that companies implement to ensure compliance with environmental regulations, protect the health and safety of their employees, and minimize their impact on the environment. This includes activities such as reducing greenhouse gas emissions, managing hazardous waste, and ensuring workplace safety.

ESG on the other hand, is a broader framework that considers a company's performance in three key areas: environmental, social, and governance. Environmental factors include issues such as climate change, resource depletion, and pollution. Social factors include issues such as human rights, labor practices, and community engagement. Governance factors include issues such as board diversity, executive compensation, and shareholder rights.

While EHS is a subset of ESG, the two concepts are not interchangeable. EHS focuses primarily on the environmental and safety aspects of a company's operations, while ESG takes a more holistic approach, considering not only environmental issues, but also social and governance issues. As such, ESG provides a more comprehensive framework for evaluating a company's sustainability and responsibility performance.

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