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    Esg 1.1.1

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    Noha Nada
    Esg investing is an approach that considers environmental, social and governance factors in investment decisions to achieve long term returns. There are various approaches like responsible investing, thematic investing, and sustainable investing. Short termism focuses on quarterly gains and ignores esg issues, while long termism promoted by the shareholder rights directive considers long term risks and opportunities like environmental, social and economic issues. Esg factors include environmental issues like resource use, social issues like human capital management, and governance issues related to stakeholders. Common esg issues are climate change, human rights, and corruption.

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    Esg 1.1.1

    Uploaded by

    Noha Nada
    4 views4 pages
    Esg investing is an approach that considers environmental, social and governance factors in investment decisions to achieve long term returns. There are various approaches like responsible investing, thematic investing, and sustainable investing. Short termism focuses on quarterly gains and ignores esg issues, while long termism promoted by the shareholder rights directive considers long term risks and opportunities like environmental, social and economic issues. Esg factors include environmental issues like resource use, social issues like human capital management, and governance issues related to stakeholders. Common esg issues are climate change, human rights, and corruption.

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    ESG 1.1.1

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    Esg investing is an approach that considers environmental, social and governance factors in investment decisions to achieve long term returns. There are various approaches like responsible investing, thematic investing, and sustainable investing. Short termism focuses on quarterly gains and ignores esg issues, while long termism promoted by the shareholder rights directive considers long term risks and opportunities like environmental, social and economic issues. Esg factors include environmental issues like resource use, social issues like human capital management, and governance issues related to stakeholders. Common esg issues are climate change, human rights, and corruption.

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    4 views4 pages

    Esg 1.1.1

    Uploaded by

    Noha Nada
    Esg investing is an approach that considers environmental, social and governance factors in investment decisions to achieve long term returns. There are various approaches like responsible investing, thematic investing, and sustainable investing. Short termism focuses on quarterly gains and ignores esg issues, while long termism promoted by the shareholder rights directive considers long term risks and opportunities like environmental, social and economic issues. Esg factors include environmental issues like resource use, social issues like human capital management, and governance issues related to stakeholders. Common esg issues are climate change, human rights, and corruption.

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    of 4

    Introduction to ESG Investing

    What Is ESG Investing?

    • ESG investing is an approach to managing assets where investors


    incorporate environmental, social, and governance (ESG) factors into
    their investment decisions with the long-term return of an investment
    portfolio in mind.

    1
    Approaches to ESG Investing

    Responsible investment Thematic investment


    Socially responsible investment
    Green investment
    (SRI)
    Sustainable investment Social investment
    Best-in-class investment Shareholder engagement
    Ethical/values-driven
    investment

    Short-Termism

    • Trading based on short-term momentum and price movements


    • Prioritizes maximizing quarterly financials
    • It may promote the following:
    • Stock market bubbles
    • Financial instability
    • Economic underperformance
    • Ignores ESG factors

    2
    Long-Termism and ESG Investing

    • Shareholder Rights Directive (SRD)


    • Investors as active owners
    • More long-term focus
    • ESG investing—aims to correctly identify, evaluate, and price
    social, environmental, and economic risks and opportunities

    ESG Factors

    Use of, and interaction with, renewable


    Environmental
    and nonrenewable resources

    Management of human capital, nonhuman


    Social
    animals, local communities, and clients

    Governance Issues tied to countries or jurisdictions, common


    industry practices, and stakeholders’ interests

    3
    ESG Issues

    Environmental Climate change, resource depletion, pollution

    Human rights, working conditions,


    Social
    employee relations

    Governance Bribery and corruption, executive pay,


    board diversity

    Guide to ESG Reporting

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