Why ESG Is Not CSR?

CSR or ESG?

Social Responsibility or Measurable Sustainability?

"Understanding the difference between CSR and ESG is crucial for Ukrainian businesses, especially now, when investors and partners increasingly demand transparency and accountability. If CSR is an expression of social awareness, then ESG is a tool for measuring this awareness, helping companies become more efficient and attractive to the international market," – Olena Potopalska, Managing Partner at AC Crowe Ukraine.

CSR primarily consists of voluntary initiatives aimed at improving a company's social and environmental impact. It includes philanthropy, environmental projects, and community support. However, these initiatives are often not subject to formal evaluation and tend to be more flexible.

In contrast, ESG is a well-defined set of criteria that allows companies to assess their impact through standardized indicators in three key areas: environmental, social, and governance. This approach is crucial for investors, who are increasingly focusing on sustainable business development.

By shifting from initiatives to clearly measurable indicators, Ukrainian businesses are making a significant step forward in building trust and ensuring a sustainable future.

Source: https://surl.li/hrpflj