Scribd
Upload
576 views17 pages

Environmental, Social, Governance: A Framework For Sustainable Business Practices

The document provides an introduction to environmental, social, and governance (ESG) investing. It defines ESG criteria as standards used by socially conscious investors to screen potential investments based on a company's environmental, social, and governance behavior. It outlines key ESG factors such as climate change, pollution, human rights, and board diversity. The document also discusses ESG frameworks, performance metrics, integration strategies, and why ESG matters in terms of risk management, reputation, and financial performance. It concludes that embracing ESG principles means focusing corporate strategy on environmental protection, social responsibility, and governance.

Uploaded by

Aryan Gupta
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
576 views17 pages

Environmental, Social, Governance: A Framework For Sustainable Business Practices

The document provides an introduction to environmental, social, and governance (ESG) investing. It defines ESG criteria as standards used by socially conscious investors to screen potential investments based on a company's environmental, social, and governance behavior. It outlines key ESG factors such as climate change, pollution, human rights, and board diversity. The document also discusses ESG frameworks, performance metrics, integration strategies, and why ESG matters in terms of risk management, reputation, and financial performance. It concludes that embracing ESG principles means focusing corporate strategy on environmental protection, social responsibility, and governance.

Uploaded by

Aryan Gupta
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 17

ESG

ENVIRONMENTAL, SOCIAL, GOVERNANCE


A Framework for Sustainable Business Practices
Welcome
Everyone
Introduction to ESG

• Environmental, social, and governance


(ESG) investing refers to a set of
standards for a company’s behavior
used by socially conscious investors to
screen potential investments.
• Environmental criteria consider how a
company safeguards the environment,
including corporate policies addressing
climate change
WARDIERE INC.

ENVIRONMENT
FACTORS
• Includes climate change, pollution, and
natural resource management

• ESG considerations can also help


evaluate any environmental risks a
company might face and how the
company is managing those risks.
WARDIERE INC.

SOCIAL
FACTORS
• Includes human rights, labor standards,
and community relations.

• Social aspects look at the company’s


relationships with internal and external
stakeholders.
WARDIERE INC.

GOVERNANCE
FACTORS
• Includes board diversity, executive
compensation, and shareholder rights.

• ESG governance standards ensure a


company uses accurate and transparent
accounting methods, pursues integrity
and diversity in selecting its leadership,
and is accountable to shareholders
Why ESG Matters?
01. Risk Management
Identifying and managing risks related to
environmental, social, and governance
issues

02. Reputation and Brand


Enhancing reputation and building a
strong brand image

03. Financial Performance


Positive impact on financial performance
and long-term value creation
ESG Frameworks
• Global Reporting Initiative (GRI)
Standardized framework for sustainability reporting

• Sustainability Accounting Standards Board (SASB)


Industry-specific ESG standards for disclosure

• Task Force on Climate-related Financial Disclosures (TCFD)


Guidance for reporting climate-related financial information
ESG Performance Metrics Ethics and
Compliance
Monitoring adherence
to ethical standards and
regulatory compliance
Carbon Footprint
Measuring greenhouse
gas emissions and
climate impact
Diversity and
Inclusion
Tracking workforce
diversity and inclusion
metrics
ESG Integration Strategies

ESG Reporting
Transparently disclosing ESG
performance and progress

ESG Risk Assessment


Identifying and mitigating
ESG-related risks in business
operations ESG Engagement
Engaging with stakeholders to
address ESG concerns and
expectations
Pros of ESG Investing
• ESG criteria can help investors avoid the
blowups that occur when companies operating
in a risky or unethical manner are ultimately
held accountable for its consequences
• As ESG-minded business practices gain more
traction, investment firms are increasingly
tracking their performance.
• The ultimate value of ESG investing will
depend on whether they encourage companies
to drive real change for the common good, or
merely check boxes and publish reports.
Cons of ESG Investing
• The downside of ESG investing is that you will
not be able to hold the full universe of stocks
available in the market.
• The average ESG-friendly investment trades
at a premium, making it a relatively more
expensive investment style
How Is ESG Investing Different From
Sustainable Investing?

• ESG and sustainability are closely related.


• ESG investing screens companies based on criteria related to being pro-social, environmentally
friendly, and with good corporate governance.
• Together, these features can lead to sustainability.
• ESG, therefore, looks at how a company's management and stakeholders make decisions;
sustainability considers the impact of those decisions on the world.
What Does ESG Mean for a Business?

• Adopting ESG principles means that corporate strategy focuses on the three pillars of the environment,
social, and governance.
• This means taking measures to lower pollution, CO2 output, and reduce waste.
• It also means having a diverse and inclusive workforce, at the entry-level and all the way up to the board of
directors.
• ESG may be costly and time-consuming to undertake, but can also be rewarding into the future for those
that carry it through.
Conclusion
• ESG—Environmental, Social, and Governance
—is not just an acronym;
• It's a roadmap for responsible and sustainable
business practices.
• We've explored how ESG factors impact the
environment, social responsibility, corporate
governance, and overall business performance.
• Embracing ESG isn't just about compliance; it's
about building a better, more resilient future for
your organization and the world.
• As you embark on your ESG journey, remember
that it's a continuous process, and each step
towards sustainability counts.
We welcome any questions or discussions
you may have on ESG and its
implementation in your specific context.
Thanks

You might also like