‘ESG’ stands for ‘Environmental, Social and Governance’ and began as one of a number of matrixes used to assess companies for investment decisions. It has now become a term used more broadly to refer to the ‘good conduct’ of companies, both internally (in how they are governed) and externally (in the impact they have on the environment and society). ‘Environmental’ addresses issues such as climate change and waste disposal; ‘Social’ covers matters such as workers conditions, diversity and human rights; and ‘Governance’ includes anti-corruption, corporate reporting and data protection.

This article provides a brief look at where ESG has come from; its status globally; how disputes arise from it; and the current position in the Middle East.