We aren't 100% sure what Azazel means, which is why the ESV goes the route it does, not hiding the difficulty from the reader. "Scapegoat" is the traditional rendering, but extrabiblical sources (1 Enoch) refer to Azazel as a leader of the demons. It could also be the name of the place the goat was sent to like "wilderness" or something. Whatever Azazel means precisely, it is clear what is going on: A goat is being sent out carrying the sins of the people. Whether Azazel is the name of the goat itself, the place, or the devil who is mocked by our sins being taken away is what's debatable. Also, Azazel is a proper noun and we usually don't translate those. See below:
AZAZEL [ə zāˊ zəl] (Heb. ˓azā˒zēl).The name of a goat sent into the desert on the Day of Atonement in order to remove Israel’s sins (Lev. 16:8, 10, 26; see NIV mg., “goat of removal”). While the KJV and NIV render the term “scapegoat” (cf. LXX apopompaíos), a more generally acceptable translation is the proper name Azazel (so RSV, JB).
Some commentators consider Azazel a kind of desert demon (see JB note at Lev. 16:8; KoB, p. 693), perhaps one of the satyrs (e.g., Isa. 13:21; 34:14). Lev. 16 does not state that this goat is an offering to such a demon; rather the animal is an insult to it, laden as it is with Israel’s sins. Actually, human sin now belongs to the demon.
Later, rabbinic interpretation viewed Azazel as the place in the wilderness to which the goat was sent. -- Allen C. Myers, The Eerdmans Bible Dictionary (Grand Rapids, MI: Eerdmans, 1987), 110.