EnvironmentGlobal warming/Countermeasures/Energy usage reductions/Carbon dioxide (CO2) emissions reductions, etc. SocialDiversity/Female labor force participation rate/Work-life balance initiatives, etc. GovernanceComposition of Board of Directors/Responsibility to stakeholders, etc. Glossary ESG ESG stands for Environment, Social, and Governance. Investment in well-managed companies based on these three elements is referred to as ESG investment. ESG investment targets companies that are coping with ESG challenges and the investors support these companies through their investment activities to eliminate environmental problems or social challenges and to foster a transparent capital market. Diversity（Diversity and Inclusion） Diversity (Diversity and Inclusion) is a concept of actively unitizing diverse human resources. The term was originally used to refer to the expansion of employment opportunities for social minorities. Today, it refers to management that improves productivity by embracing the diversity of age, personality, academic background, and value, in addition to gender and race, and utilizing a wide variety of human resources. Corporations focus on diversity to find great talents, encourage unconventional ideas, and address a variety of needs of society. Work-life balance Work-life balance is balancing work and life while fully exercising one’s innate abilities to live the life one desires. Corporations promote work-life balance to bring the best out of their employees to help them contribute to the company by providing an environment where they can fulfill their responsibilities and demands outside of work while working. The concepts and policies of work-life balance emerged in the US as a response to various changes. Its core component is “workstyle reforms”. Stakeholders Stakeholders are interested parties such as people and organizations that can be affected by corporate activities directly and/or indirectly. Specifically, stakeholders include shareholders, executives, employees, financial institutions, creditors, clients, competitors, customers, local residents, environmental protection organizations, tax authorities, administrative authorities, etc.What is ESG?
