COMPONENTS OF THE ESG FRAMEWORK IN THE CONTEXT OF SUSTAINABILITY AND THE CIRCULAR ECONOMY

The basis for implementing corporate sustainability is the ESG (Environmental, Social, Governance) framework, which helps businesses to assess their performance in relation to sustainable development goals in a transparent and comprehensive manner. The framework was developed in the early 2000s under the influence of CSR (Corporate Social Responsibility), SRI (Socially Responsible Investing), and sustainable development concepts, and is now widely used by financial market participants, government and other actors in corporate financing decisions. Circularity as an approach is a key component of the environmental pillar of ESG, while the circular economy concept is essentially an environmental management tool that supports the practical implementation of the objectives set out in the E pillar of ESG. The circular economy can also be defined as an evolutionary approach to sustainable, restorative, and regenerative agriculture, which aims to maintain healthy soils globally, protect natural soil resources, eliminate the use of pesticides and insecticides, and ensure the sustainable cultivation and production of food. The sustainable development goals formulated by the United Nations (UN) can also be seen as tools of the circular economy, which have made the vision of sustainability more achievable and more structured, thereby also helping to achieve ESG objectives. To achieve corporate sustainability, the most effective regulatory efforts have so far been implemented in the European Union, where numerous provisions have been enacted to facilitate ESG reporting. The intention to operate on an ESG basis has also been expressed by agricultural entities, with many agricultural companies pursuing exemplary practices in the circular economy and thus contributing to the creation of a sustainable future.