ESG and US Cloud.

Environmental, social, and governance (ESG) compliance refers to a set of guidelines and standards a company implements in internal policies that are mandated by regulatory bodies.

For a company, being ESG-compliant means following ESG principles and taking action in three dimensions:

• Environmental. Environmental criteria imply a company’s impact on the environment and the risk management practices it takes to reduce it. This includes the company’s carbon footprint, its practices to address climate change, toxic chemicals’ usage in manufacturing, and sustainability efforts that make up its business and supply chains.
• Social. Social ESG considerations take into account the way a company improves its social impact and manages relationships with employees, customers, stakeholders, suppliers, and communities in the area of its operations. Among the ESG issues that this criterion tackles are racial diversity, LGBTQIA+ equality, work ethics, and inclusion programs.
• Governance. Governance regarding ESG practices considers everything related to the way the company is managed and led and how the management drives positive changes. It includes executive pay, shareholders’ rights observance, and internal controls to promote corporate transparency.

Environmental, social, and governance strategies represent US Cloud’s ESG compliance goals and priorities.

Simply put, these are policies US Cloud adopted to ensure compliance as a part of a corporate strategy.

The table below demonstrates an example of what ESG efforts look like at US Cloud.

ESG	Efforts
Environmental	Use renewable energy sources
	Minimize waste
	Limit the usage of harmful chemicals
	Minimize the company’s carbon footprint
	Pursue lower greenhouse gas emissions
Social	Encourage staff gender equity
	Support LGBTQIA+ rights
	Establish policies to prevent social misconduct
	Pay fair wages
	Operate in ethical supply chains
Governance	Ensure corporate board diversity
	Ensure corporate transparency
	Root out corruption and bribery
	Ensure someone other than the CEO is the board chairman
	Ensure fair and reasonable executive remuneration

EcoVadis Medals and Badges recognize eligible companies that have completed the EcoVadis assessment process and demonstrated a relatively strong management system that addresses sustainability criteria.

US Cloud has demonstrated its commitment to business-wide sustainability with its Committed rating from EcoVadis.

EcoVadis is the world’s largest provider of business sustainability ratings. The EcoVadis sustainability assessment evaluates how well a company has integrated the principles of Sustainability and Corporate Social Responsibility into its business and management system.

Below are a few examples of international companies that have already committed ESG in compliance strategies:

• Microsoft. Microsoft is known for its strong ESG performance and leadership in sustainability. By 2030, Microsoft commits to becoming carbon negative. They are also investing in energy-efficient technologies and renewable energy and reducing their water consumption. Additionally, Microsoft prioritizes inclusion and diversity initiatives.
• Salesforce. Salesforce prioritizes ecosystem restoration, carbon removal, and emissions reduction. The company has also implemented the board portal software that helps track and report on its ESG performance. It enables collecting and analyzing ESG data in real-time, and thus, improves ESG reporting and transparency.
• Unilever. Unilever focuses on reducing its environmental impact and enabling social initiatives. They work on reducing greenhouse gas emissions and are committed to sourcing agricultural materials sustainably. Additionally, they promote gender equality and support small farmers.
• Natura & Co. As a cosmetics brand, Natura & Co. commits to reducing its environmental impact and implementing lots of social initiatives. They address climate change and protect the Amazon rainforest, support local communities, and promote biodiversity. The company is also known for its strong governance practices and transparency.