We shed some light on these terms.
Short excursion: ESG
Finally, we can’t discuss CSR without touching on ESG, which stands for ”Environmental, Social, and Governance“. ESG is a financial markets metric used by investors to measure how companies perform their corporate activities, socially and environmentally. In terms of long-term strategy, CSR and ESG have many building blocks that may have overlap, such as seeing corporate effects on consumers, supply chains, environments, and operations. As a testament to recent traction in the ESG movement, companies listed on the Hong Kong exchange must now disclose certain ESG metrics to comply with regulations. ESG metrics can be seen as one of many measures of a company’s valuation (and affect their cost of capital) and can also help teams assess and manage potential industry risks.