From CSR to ESG, a shift in the agenda of responsible business

With these changes, there is also a new way to describe the work: Environment, Social, and Governance, or just ESG. We believe ESG is more accurate at describing how organisations act responsibly, so we have changed our approach from CSR to ESG. 

What are CSR and ESG, and what are the differences between them?  

The general thought is that CSR focuses primarily on philanthropy and meaningful environmental or societal initiatives. In comparison, people who work with ESG will say that it is a more comprehensive approach that evaluates an organisation’s environmental, social, and governance performance. To put it another way, ESG isn’t just about doing good—it’s about integrating sustainability into the core of your business. This shift toward ESG represents a broader understanding of how companies impact the world and how these impacts are measured, reported, and scrutinised:

• Environment: Covers everything from climate change to resource management and environmental conservation.
• Social: Includes how companies manage relationships with employees, suppliers, customers, and communities.
• Governance: Refers to ethics, compliance with laws, privacy,  and transparency.

How do I use ESG? 

The bar has been raised for what organisations are expected to do. No organisation in Europe can effectively ignore the ESG agenda in the near future. This is primarily due to another abbreviation of another abbreviation: the EU’s Corporate Social Responsibility Directive CSRD. 

CSRD is an EU directive that has significantly raised the regulations for businesses regarding responsibility. Businesses need to stay ahead of compliance or risk falling behind their competitors and not having a legal business. ESG is not just a “nice to have” anymore—it's quickly becoming a requirement not just by the EU but also by shareholders, stakeholders, clients, and customers to keep doing business.

Given the state of the planet, the EU Commission's decision to start requiring more action across the member states’ businesses is probably the right one. We have a climate crisis and biodiversity loss that are both completely out of control. Unless we start pulling in the right direction, the consequences will be immense for both the environment and the economy. 

Since the EU now legally requires thinking about ESG and has increased the minimum expectations, being a responsible organisation is becoming central and a “license to operate.” Quite simply, we are becoming increasingly aware of our business's impact on the environment, and investors and internal and external stakeholders are also becoming increasingly aware of it. Companies that don’t take ESG seriously may find themselves excluded from markets, unable to attract investment or talent, or facing increasing legal challenges. 

EcoTree is your opportunity to show environmental responsibility!

While we don't develop your ESG strategy for you, we excel at simplifying the process of initiating impactful nature-based investments.

EcoTree is uniquely positioned to support businesses on their journey. At its core, EcoTree offers a compelling environmental solution: you can become the owner of a local forest with nature as its central focus. This forest isn’t just an investment in trees; it’s an investment in the planet. Companies can leverage their EcoTree investments for legislative purposes, incorporating them into sustainability reporting and using them to enhance scoring. These investments also allow companies to engage employees by involving them in forest ownership or visits, fostering stronger employee engagement. This approach creates a tangible connection between the business and sustainability.

What’s next for ESG? 

For now, we call the responsibility agenda ESG, but the area keeps developing. While we call it ESG today, it is clear that the agenda of responsibility in businesses will continue to evolve. But one thing is certain: For now, all businesses need to embrace the ESG agenda. Businesses that embrace it early will be better positioned to thrive in a world where sustainability, transparency, and ethics are no longer optional but essential. At EcoTree, we can help you on the journey by making investing in Europe’s nature and biodiversity easy and efficient.

So, hello ESG, and goodbye CSR.

Do you want to hear how we can help you strengthen your company’s ESG strategy? Set up a meeting with one of our experts.