CSR or ESG? Or how to navigate the corporate sustainability landscape!

In today's dynamic business landscape, two terms regularly surface in discussions of sustainability and corporate responsibility: Corporate Social Responsibility (CSR) and Environmental, Social and Governance (ESG) criteria. However, one question remains: when do we talk about, and should we use, the term CSR or ESG?

CSR (Corporate Social Responsibility) is a concept centered on the idea that companies have a responsibility to benefit the society in which they exist. It's a broader vision that encompasses all a company's ethical, social and environmental practices. Its founding principle is based on the conviction that companies have a responsibility to society, and must make a positive contribution to their community and the environment.

In fact, CSR policy must take into account three fundamentals: People, Planet & Profit, i.e. social, environmental and economic issues.

Conversely, ESG criteria are defined as a specific evaluation methodology, mainly used by investors to assess a company's performance in key areas.

In other words, ESG criteria focus on environmental, social and governance factors, providing indicators for assessing a company's sustainability from a financial point of view.

Finally, ESG analysis is the term used to describe an investor's assessment of a company's CSR performance.

ESG criteria initially emerged in the financial sector as a tool for assessing sustainability-related risks and opportunities.

Clearly, their influence has since spread, with today's ESG term transcending the financial realm to become a more universal language of corporate sustainability.

Indeed, companies of all sizes are increasingly adopting ESG criteria as a benchmark for improving their sustainability performance.

This is why consumers themselves are increasingly attentive to the ESG practices of companies, favoring those that integrate ethical and sustainable values into their activities.

Finally, the wider relevance of ESG criteria is reflected in greater corporate transparency, responsible resource management, the promotion of employment equity and respect for human rights. What's more, these elements are no longer confined to financial discussions, but are becoming an integral part of the public discourse on corporate responsibility.

So, whether we speak of CSR or ESG, these concepts converge towards a common goal: to encourage more responsible and sustainable business practices for the good of society and the planet.