PU-MET : Panjab University MBA Entrance Exam with MCQ Answers 2024

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60.

What does 'E' stand for in 'ESG' ?

A: Economical
B: Environmental
C: Energy
D: Equity

The answer is: B

Explanation

The correct option is B: Environmental.

In the context of ESG, 'E' stands for "Environmental." ESG stands for Environmental, Social, and Governance. It is a framework used by organizations to evaluate their performance and impact in these three areas:

Environmental: Refers to the company's impact on the natural environment, including factors such as carbon emissions, resource use, waste management, and climate change initiatives.

Social: Involves the company's relationships with employees, suppliers, customers, and communities, including aspects like labor practices, diversity and inclusion, and community engagement.

Governance: Relates to the company's internal practices and policies, including corporate governance, ethical behavior, transparency, and regulatory compliance.

ESG factors are increasingly used by investors, stakeholders, and regulators to assess the sustainability and ethical impact of a company's operations.