CSR(Corporate Social Responsibility)。The concept of ESG is broader than CSR (Corporate Social Responsibility).

Traditionally, CSR emphasizes that companies should pursue economic interests while also taking into account social responsibilities. ESG, on the other hand, sets detailed indicator systems for enterprises around environmental protection, social responsibility, and corporate governance. Under the concept of CSR, corporate support for tree planting and greening, charitable activities to help the elderly, and warm-hearted gestures towards employees in need are often highlighted as publicity focuses. In contrast, within the ESG framework, such charitable actions and caring behaviors are generally not the objects of assessment. In layman's terms, the ESG system emphasizes that companies must improve their performance based on various ESG standards and undergo auditing and certification by independent third parties, rather than simply compiling records of good deeds.

 The concept of ESG is smaller than the concept of sustainability.

Sustainable development considers three broader aspects: economic, social, and environmental. A typical feature of ESG is that it takes into account non-financial indicators; economic indicators are not the focus of ESG assessment. The ESG framework is more about preventing companies from downplaying the impact of their actions on the existing ecological environment and society through economic or employment data.

ESG certification and legal compliance. 

Legal compliance is mandatory, such as food hygiene requirements under the "Food Safety Law"; otherwise, penalties and even criminal liability may be imposed based on the severity of the violation. However, legal compliance is a relatively basic requirement, while ESG certification represents higher demands and expectations from stakeholders in the value chain for a company. Dominant enterprises in the supply chain can choose suppliers with better ESG performance through due diligence and responsible procurement. Consumers are increasingly inclined to consider ESG issues behind products. The EU Battery Regulation, which will take effect in 2023, includes three types of ESG-related indicators in its Annex 10. The first type of indicator covers environmental, climate, and health aspects, considering direct, induced, indirect, and cumulative effects, including air pollution such as greenhouse gas emissions, water pollution like underwater and marine environments, soil issues like soil erosion, and biodiversity like habitat destruction. The second type of indicator involves human rights, labor rights, and industry relations, including occupational safety and health, child labor, forced labor, freedom of association, etc. The third type of indicator pertains to community life, including indigenous people's livelihoods. This reflects a trend where ESG certification is no longer just a nice-to-have action for corporate resources but is increasingly becoming an essential new compliance goal that companies must achieve.

ESG认证与负责任采购。 ESG Certification and Responsible Sourcing. ESG认证针对单个企业或者工作场所，就像拿着放大镜对其ESG表现进行考核。负责任采购需要通过供应链尽责管理来实现，这需要站在更高的角度，从整个供应链的角度审视各个链上企业的ESG表现，识别并消除ESG风险。ESG certification targets individual companies or workplaces, akin to scrutinizing their ESG performance under a magnifying glass. Responsible procurement requires due diligence management in the supply chain, necessitating a broader perspective that examines the ESG performance of enterprises throughout the supply chain and identifies and mitigates ESG risks.