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Definition

Public companies and state-owned enterprises are required to produce an environmental, social and governance (ESG) report which details their (1) impact on the environment covering aspects such as energy consumption, waste management practices, pollution control measures, and initiatives aimed at addressing climate change. (2) their relationship with their employees, stakeholders, and the broader community. It encompasses areas such as labour practices, diversity and inclusion initiatives, adherence to health and safety standards, and the level of engagement with local communities and (3) their leadership structure and internal mechanisms, including board composition, executive compensation policies, the effectiveness of risk management practices, and the commitment to ethical business conduct. These reports by listed companies seldom have any direct impact on the company's share price with a few exceptions. For example, Sasol's environmental commitments and obligations.

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