ESG (Environmental, Social, Governance)

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Definition

ESG (Environmental, Social, Governance) refers to a set of criteria used to assess a company’s impact on the environment, society, and how it governs itself. ESG performance influences investor decisions, regulation, and public trust.

Example in context

An investment firm screens climate risk and biodiversity exposure as part of its ESG due diligence, assessing both environmental impact and long-term resilience.

Why it matters

Climate risk is a key part of the E in ESG. Meeting ESG expectations requires credible, data-backed reporting on how risks are identified and managed.

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