What is ESG—and What Can You Do About It?

By Ritika Kumbharkar, June 13 , 2025

In today’s world, it’s not enough for companies to focus solely on profits—people want to know how businesses impact the planet, society, and their own employees.

In today’s world, it’s not enough for companies to just make money—they need to make a positive difference to attract consumers. That’s where ESG comes in.

What Does ESG Mean?

ESG stands for Environmental, Social, and Governance. It’s a way to evaluate how responsibly a company operates, not just how profitable it is. Think of it as a report card for corporate ethics and sustainability. There are three components to ESG:

• Environmental: How does a company impact the planet? This includes carbon emissions, waste, water use, and energy efficiency.

• Social: How does a company treat people and the communities it operates in? This covers diversity and inclusion, labor practices, customer privacy, and community engagement.

• Governance: How is a company run? This involves leadership transparency, board diversity, anti-corruption efforts, and fair executive pay.

Companies with strong ESG performance are often seen as more trustworthy and better prepared for long-term success by both employees and customers, as well as investors.

Why Should You Care?

Let’s be real—ESG may sound like business or financial jargon, but it affects everything from the clothes you wear, to the food you eat, and the apps on your phone. ESG issues are tied to climate change, human rights, and how power is distributed. In short, they impact your life and your future.

Plus, the rise of ESG means you have more power as a consumer, employee, and investor than ever before.

What Can You Do?

Here are five simple ways to make ESG standards part of your everyday life:

1. Research the Brands You Support

Before buying from a company, check their ESG ratings or sustainability reports. Websites like Good On You (for fashion), Goods Unite Us, or Ethical Consumer give insight into how companies treat people and the planet.

2. Vote with Your Wallet

Support businesses that align with your values. Whether it's buying from BIPOC-owned brands, local businesses, or companies with climate commitments, your purchases send a message.

3. Ask Questions at Work

If you're working (or applying for jobs), ask about a company’s ESG initiatives. Do they have a sustainability team? How do they support employee well-being? Showing interest in ESG practices can set you apart as a thoughtful candidate, and potentially kickstart ESG initiatives if the company doesn’t have any.

4. Start Investing Sustainably

If you're beginning to invest—even through a retirement plan—look into ESG-focused funds. Apps like Betterment, Fidelity, or Robinhood offer options for values-based investing.

5. Speak Up and Share

Your voice matters. Advocate for strong ESG practices in your campus clubs, workplaces, and social feeds. Talk about fast fashion, fair wages, or climate justice. The more people who care, the more companies will listen.

Final Thoughts

You don’t need to be an economist or environmental scientist to care about ESG. Every decision you make, what you buy, where you work, and how you invest can support a more sustainable, fair, and ethical world.

If you’re ready to take action, check out our ESG action page for practical steps to help you start today.

Change The Chamber is a nonpartisan coalition of young adults, 100+ student groups across the country, environmental justice and frontline community groups, and other allied organizations.