ESG and CSR, what are the differences ?

ESG and CSR, what are the differences? – “6 Min. to understand” with Pierre Léonard. Midoricast: Podcast #222

ESG and CSR, what are the differences?

For quite some time, we spoke of CSR (Corporate Social Responsibility), then came the term ESG. Some believe it replaces the former, others feel a bit lost among the acronyms… But we’re reassured that those most involved, at least theoretically, know what it’s all about…

Understanding the nuances and the complementarity of these approaches is essential for everyone. Better understanding also means better engagement. As we have already discussed in several episodes, changes in companies affect everyone.

So, in this “6 Minutes to Understand” capsule, Pierre Léonard explains and puts things into perspective with his usual talent: transferring knowledge in a fun, clear, and effective way… in six minutes, sometimes a bit more.

A podcast to listen to and share generously. The best reward for us would be if you left a few stars as a rating and asked your questions or left your comments for Pierre Léonard via a voicemail on our answering machine.

No worries: the voicemail doesn’t bite, and you are not required to say your name. You can replay and record again before sending your voice. And if you don’t have questions or comments, a simple thank-you is always warmly welcomed. It helps us stay motivated to keep bringing you these duo capsules.

Listen to this podcast via Podcastics and subscribe, thank you!

To subscribe, choose your favorite app via the “See All” button in our Linktree list.

For people who are deaf, hard of hearing, or experiencing hearing difficulties, we provide a full transcript at the end of the article.
Make a donation to support our work: Triodos — IBAN : BE73 5230 8097 4160 — BIC : TRIOBEBB

Useful links for this episode:

• Pierre Léonard’s Linktree
• The Circular Economy Fresco
• Website of The Podcast Factory Org asbl-vzw
• Join the Kaya coalition

Links to support our association:

• Our Podcastics affiliate link (Note: valid 7 days after the link is opened)
• Our O2Switch affiliate link for top-notch web hosting!
• Review our association The Podcast Factory Org asbl-vzw through our Google profile

Our podcasts are accessible to everyone!

In addition to voicemail, each episode is timestamped and comes with a full transcript, allowing deaf and hard-of-hearing people to access it. And with a Google Translate plugin in Chrome, the episode becomes available in all languages! We also offer a video format with subtitles.

Why this section?

We work with companies that apply real, measurable ESG (Environmental, Social, Governance) practices. Pierre trains and supports them in this transition. Our approaches are different but complementary: we encourage, he supports.

This choice also raises a real challenge: where to draw the line?

Some companies mentioned in this section are not aligned with our current criteria, and we would refuse all collaboration with them as long as they don’t begin concrete change. But that’s precisely where Pierre steps in: his role is to initiate this transformation.

This podcast is not about judging, but about inspiring. The goal? To encourage rather than discourage, to support rather than exclude.

Let’s commit together towards a circular, sustainable, and inclusive economy. Listening, reflecting, acting… in six minutes.

Listen to this podcast on circular economy via our YouTube channel (subscribe: thank you! ):

French: The full transcript of this podcast is available as subtitles of the video in five languages: French, Dutch, German, English, and Spanish.
Dutch: De volledige transcriptie van deze podcast is beschikbaar als ondertiteling van de video in vijf talen: Frans, Nederlands, Duits, Engels en Spaans.
German: Die vollständige Transkription dieses Podcasts ist als Untertitel des Videos in fünf Sprachen verfügbar: Französisch, Niederländisch, Deutsch, Englisch und Spanisch.
English: The full transcript of this podcast is available as video subtitles in five languages: French, Dutch, German, English, and Spanish.
Spanish: La transcripción completa de este pódcast está disponible como subtítulos del vídeo en cinco idiomas: francés, neerlandés, alemán, inglés y español

Podcast sequencing “ESG and CSR, what are the differences?”:

• [00:00:34] Introduction and topic presentation
• [00:01:06] What is meant by ESG?
• [00:01:37] What is meant by CSR?
• [00:02:04] What distinguishes ESG from CSR
• [00:03:03] Objectives of CSR
• [00:03:28] Objectives of ESG
• [00:03:48] In companies, who is concerned by CSR?
• [00:04:17] In companies, who is concerned by ESG?
• [00:04:46] Illustrative example
• [00:06:09] Convergence between the two approaches
• [00:06:57] Three pieces of advice
• [00:08:11] Summary
• [00:08:36] Announcement of the next topic
• [00:08:45] Episode closing

Podcast transcript “ESG and CSR, what are the differences?”:

Podcast sequencing:

Michel: [00:00:00] This podcast project is an initiative created and produced by the non-profit “The Podcast Factory Org”, with the sponsorship of “transforma bxl – Innovation Playground”. Since January 2025, and for five years, we are also sponsored by “Plugin Company”, our preferred charging stations and charging card operator. “The Podcast Factory Org” is very proud to be a member of “KAYA – Coalition of Ecopreneurs” and to collaborate with the “Love Health Center”. You can find all episodes of all our podcasts on the “What’s Your Story dot be” website.

Intro Jingle: [00:00:32] You are listening to The Podcast Factory Org!

Michel: [00:00:34] Welcome to a new Midoricast episode, your podcast about positive initiatives for the environment. “Midori”: Green in Japanese, “Cast”: from broadcast. We are in the section six minutes to understand, Pierre Léonard: host and creator of this column.

Pierre Léonard: [00:00:48] Thank you, Michel. Welcome then to this new episode of “6 minutes to understand”, the podcast that answers everything decision-makers want to know about sustainability. Today we’re going to untangle two concepts that often create confusion, two acronyms: ESG and CSR.

Pierre Léonard: [00:01:06] ESG, we already talked about it in a previous episode, but I’d like to revisit it a bit to provide clarity today. You’ve probably heard these two terms regularly in your company, but do you really know what distinguishes them? ESG stands for Environmental, Social, and Governance. It refers to a set of criteria mainly used to evaluate the non-financial performance of a company. Meaning: the efforts a company makes with regard to the environment, among others.

Pierre Léonard: [00:01:37] CSR, or Corporate Social Responsibility, on the other hand, refers to the voluntary approach through which a company integrates social, environmental, and economic concerns into its daily activities and in its interactions with all stakeholders, whether employees, clients, suppliers, or local communities. So, it’s a matter of origin and approach.

Pierre Léonard: [00:02:04] These two concepts have different origins, which partly explains their distinct approaches. CSR was born from ethical reflection on the responsibility of companies toward society. It gradually developed from the 1950s but truly took off in the 2000s. CSR is therefore primarily a company philosophy, a way of considering its role in society beyond creating economic value. ESG, however, is a more recent concept that emerged from the financial world. It was popularized in the 2000s by investors who wanted to integrate sustainability criteria into their investment decisions. ESG was born as a tool for analysis and evaluation. So, these two concepts share a common goal.

Michel: [00:02:51] But they do not oppose each other.

Pierre Léonard: [00:02:52] Exactly, they do not oppose but complement one another. And their common goal is to make companies more responsible. But their specific purpose is different.

Michel: [00:03:01] So the best company would be the one implementing both?

Pierre Léonard: [00:03:03] We’ll get to that. CSR aims to transform a company from within by integrating sustainability into its strategy, culture, and operations. Its goal is to improve the company’s overall impact on society and the environment while creating value. I do mean value—not profit—for all stakeholders. So CSR focuses on action and internal change.

Pierre Léonard: [00:03:28] Whereas ESG was designed to measure, assess, and report on a company’s non-financial performance. It is mainly a tool for investors, who use it to evaluate sustainability-related risks and opportunities. ESG is thus more oriented towards measurement and external communication.

Pierre Léonard: [00:03:48] Another major difference lies in who uses these concepts. CSR mainly involves the company’s operational and management teams; it guides their everyday actions, for instance, those of a “Green Team”, and their strategic decisions. Roles such as CSR Manager, Impact Manager, or Chief Sustainability Officer, Human Resources Directors, or Executive Managers are generally the main actors involved in implementing CSR.

Pierre Léonard: [00:04:17] ESG, on the other hand, is of particular interest to investors, financial analysts and, for larger companies, extra-financial rating agencies like Standard & Poor’s, etc. These actors use ESG criteria to evaluate companies’ sustainability performance and guide their investment decisions. Within a company, therefore, it is usually the finance and investor relations departments that take care of ESG topics.

Pierre Léonard: [00:04:46] A concrete example to clarify: let’s take a fictitious agri-food company—let’s call it “Sustainable Delight”, a chocolate confectioner (no idea why, but I like that sector). In a CSR approach, this company could set up a responsible sourcing policy, train employees and workers (and managers, of course) on sustainable development issues, look into reducing water, energy, and resource consumption, support local community projects, and improve working conditions both in its factories and at suppliers, in the regions where raw materials are grown. These actions truly aim to improve the company’s impact on all stakeholders. From the ESG point of view, the company will be rated on its CO₂ emissions and resource use (“E” for Environment), its staff turnover rate, its diversity and inclusion policies (“S” for Social/Societal), and finally the composition of its board, management remuneration, and ethical practices (“G” for Governance). These indicators enable investors to assess the extra-financial performance of our “Sustainable Delight” company and the risks involved.

Pierre Léonard: [00:06:09] So today, as you said earlier, we’re seeing a gradual convergence between these two approaches. With changing regulations, notably Europe’s CSRD directive, which we’ve discussed before, companies are increasingly required to monitor and report non-financial performance—ESG performance. This demand for transparency is pushing them to integrate more measurable actions into their CSR programs, thus aligning more closely with ESG criteria. At the same time, investors are paying greater attention to the quality of CSR efforts in their ESG assessments, recognizing that a strong CSR strategy is often a sign of future ESG performance. I hope this is clear for everyone.

Pierre Léonard: [00:06:57] To conclude, let me share three practical tips for navigating between CSR and ESG. First, align your CSR strategy with ESG criteria. Make sure your internal initiatives also meet investor expectations—this will ease your communication and strengthen your credibility.

Pierre Léonard: [00:07:19] Second, quantify your CSR actions. Even if it’s mainly a qualitative process, try to measure the impact of what you do whenever possible. Concrete data—like lower staff turnover, or the number/percentage of staff in continuing education—will reinforce your ESG reporting and help you demonstrate progress. Know that these famous key performance indicators, of which I’ve just given two examples, will vary depending on your sector, company size, etc.

Pierre Léonard: [00:07:51] Third tip: build bridges between your teams. Ease communication between your CSR people, finance, investor relations, and don’t forget your field teams. A shared understanding of what’s at stake in CSR and ESG will allow for better coherence in your global approach.

Pierre Léonard: [00:08:11] In summary: CSR and ESG are two sides of the same coin; business sustainability is always the ultimate issue. CSR is an action strategy. ESG is a framework for measurement and communication. And they’re not opposed but, as we’ve said, complement and reinforce each other. Thanks for spending these “6 minutes to understand” the difference between ESG and CSR with me.

Pierre Léonard: [00:08:36] In the next episode, we’ll look at exactly how to involve your teams in this ESG and CSR journey. See you soon.

Michel: [00:08:45] Listeners will notice the section is called “6 minutes to understand” and sometimes we do go over six minutes—but if you just count Pierre’s speaking time, we’re often on target. By the way, don’t forget there’s a voicemail on every podcast episode where you can leave a comment, a question, a message for Pierre Léonard, in “6 minutes to understand”. See you soon.

Outro Jingle: [00:09:05] You are listening to “The Podcast Factory Org”!

Michel: [00:09:07] This podcast project is an initiative created and produced by “The Podcast Factory Org” non-profit, with the sponsorship of “transforma bxl – Innovation Playground”. Since January 2025, and for five years, we are also sponsored by “Plugin Company”, our preferred charging stations and charging card operator. “The Podcast Factory Org” is very proud to be a member of “KAYA – Coalition of Ecopreneurs” and to collaborate with the “Love Health Center”. You can find all episodes of all our podcasts on the “What’s Your Story dot be” website.

All our Midoricast podcasts

Podcast: Play in new window | Download

#PodiBUZ, the editorial brand of The Podcast Factory Org ASBL-VZW.