February 13, 2023 / Papanastasiou Pantelis

Environmental, Social and Governance ESG

Environmental, Social and Governance (ESG)

For the good operation of every company, goals must be set, but the set of those concerning sustainable development (environmentally and socially) is ESG (Environmental, Social and Governance). The goal is not only the financial development of the company, but the acquisition of a social face as well as a friendlier attitude towards the environment. (

What is Sustainable Development?
Sustainable Development is development (regardless of the sector) whose implementation is guided by the protection of the environment. The maximum possible gain of goods from the environment, but without interrupting the natural production of these products in sufficient quantity in the future.(Wikipedia)

Environment. (E)
Included in this area are issues concerning both living and non-living physical systems.

  1. Climate
  2. Green energy
  3. Gas emissions
  4. The energy footprint of the company etc.


  • Reduction of carbon dioxide emissions from the company's factories
  • Minimize the use of plastics
  • Use of renewable energy sources
  • Recycling of materials, etc.


Society. (S)

  • The inspiration of the new generation
  • The defense of human rights
  • Functional and healthy working relationships


  • Gender equality within the company
  • Non-racist staff selection criteria
  • Protecting employees from harassment
  • Employee rights


Corporate Governance (G)

They are the procedures for decision-making, for the structure of the company and for the management practices.

  • Board size and diversity
  • Promotion of women on boards of directors and in administrative positions.
  • Rewards
  • Danger management

The limited understanding of sustainability by small and medium enterprises and the perception that ESG is only for "big enterprises" makes it difficult for them to develop in the new reality. (  )

What are the benefits of ESG for SMEs?

ESG benefits to SMEs:

1. Reduction of operating costs.

2. Employee engagement and productivity at higher levels

3. Increase in income etc.

4. Business innovation

  • Development of environmentally friendly goods and services
  • Business adaptation to the effects of climate change

5. Ensuring capital inflow and access to investments with ESG criteria.

6. Improving the energy footprint of buildings, equipment and facilities

7. Turning to low-emission sources, such as biomass, methane, geothermal, waste-to-energy, hydrogen

8. Review and upgrade the efficiency of production and distribution processes (green movement, circular approach, adoption of recycling)

9. Entry into new markets.

  • The criteria for approaching consumers will be environmental and social responsibility for the selection of products/services and solutions.

10. Utilization of the incentives provided by the state and the European Union

  • programs for the spread of electrification
  • renewable energy licensing facility
  • sustainable agriculture support and initiatives
  • strengthening the circular economy.

What dangers should you protect yourself from:

1. Transitional risks

  • Transitional risks relate to the transition to a low-carbon economy

2. Technology

  • Costs of switching to lower emission technologies.
  • Lack of infrastructure (e.g. waste management, electric vehicle charging, etc.).
  • Insufficient technological knowledge to manage environmental risks.

3. Purchase

  • Increased costs for raw material and energy
  • Reduced competitiveness due to low environmental performance.

4. Reputation

  • Direct effect of social networks on the image of the company
  • Stigmatization of certain industries (e.g. mining, disposable products)

5. Governance

  • Introduction of emissions taxation.
  • Increasing requirements for the disclosure of corporate emissions.
  • Increasing environmental standards for products and services.

Natural hazards with immediate effects

  • Increase in the frequency and catastrophic effects of extreme weather events (eg wildfires, droughts, floods, hurricanes).
  • Loss of biodiversity.
  • Degradation of ecosystems and disappearance of forest lands.
  • Air pollution and ocean pollution.

Natural hazards with long-term effects

  • Extreme fluctuations and unpredictability of weather patterns.
  • Increase in average global temperature.
  • Sea level rise.
  • Depletion of availability of natural resources.

source: (