Assignment 2 – ESG and Sustainable Finance

Presented by Group 7
Group members

Rimpal Acharya 21020243025

Akshay Dwivedi 21020243027
Hanoon Razak 21020243006
Mahesh Chavan 21020243038
Naveen Mucharla 21020243023
Souhardya Chatterjee 21020243003
Company name - Number Nudgers

Our main points would focus around

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Here are some steps that Number Nudgers companies can take to develop an ESG policy:

Identify key stakeholders: It is important to identify the key stakeholders, who may be affected
by the company's business practices and policies, including customers, employees,
shareholders, and the broader community. For example, key stakeholders of Number Nudgers
would be
Customers: Customers are a key stakeholder for Number Nudgers, as they are the
primary source of revenue for the company. It is important for the company to consider the
needs and preferences of its customers when making decisions that could impact them.
Employees: Employees are another important stakeholder for financial trading
companies. It is important for the company to consider the well-being and satisfaction of its
employees, as they play a critical role in the success of the business.
Shareholders: Shareholders are a key stakeholder group for financial trading
companies, as they own a stake in the company and are entitled to a share of its profits. The
company should consider the interests of shareholders when making decisions that could
impact their investment.
Regulators: Financial trading companies are subject to a range of regulatory
requirements, and regulators such as central banks and securities exchanges are key
stakeholders in the industry. The company should consider the expectations and requirements
of regulators when making decisions that could impact their business.
Broader community: Financial trading companies also have a responsibility to consider
the impact of their business practices on the broader community, including the environment and
local communities in which they operate. This may include issues related to environmental
sustainability, social responsibility, and corporate governance.

Assess current practices: The company should assess its current practices and policies to
determine where improvements can be made to better align with ESG principles. This may
involve conducting a materiality assessment to determine which ESG issues are most relevant
to the company and its stakeholders.
Steps which Number Nudgers take to assess the current ESG practices

Conduct a materiality assessment: A materiality assessment is a process of identifying

the ESG issues that are most relevant and important to the company and its stakeholders. This
may involve surveying stakeholders to understand their concerns and priorities, as well as
reviewing relevant data and industry benchmarks.

Review current policies and practices: The Company should review its current policies
and practices to determine how they align with ESG principles. This may involve reviewing
codes of conduct, policies related to environmental sustainability and social responsibility, and
governance structures and practices.

Engage with stakeholders: Engaging with stakeholders, including customers,

employees, shareholders, and the broader community, can help the company understand their
perspectives on ESG issues and identify areas for improvement.

Benchmark against industry peers: Comparing the company's ESG performance to that
of its peers can provide valuable insights into areas where the company is doing well and areas
where it may need to improve. This may involve reviewing industry benchmarks and ratings,
such as those provided by third-party sustainability rating agencies.

Identify areas for improvement: Based on the materiality assessment, review of current
policies and practices, stakeholder engagement, and benchmarking against industry peers, the
company should identify areas where it can improve its ESG performance. This may involve
setting specific goals and targets related to ESG performance.

Set goals and targets: Based on the assessment of current practices, the company should set
specific goals and targets related to ESG performance. These goals should be measurable,
time-bound, and ambitious..
There are several steps that financial trading companies can take to set goals and targets
related to environmental, social, and governance (ESG) performance:

Identify key ESG issues: The first step in setting goals and targets is to identify the key
ESG issues that are most relevant and important to the company and its stakeholders. This may
involve conducting a materiality assessment to determine which issues are most material to the
company and its stakeholders.

Set specific, measurable, time-bound, and ambitious goals: Goals should be specific,
measurable, time-bound, and ambitious in order to be effective. For example, the company may
set a goal to reduce greenhouse gas emissions by a certain percentage within a specific time
frame.

Consider industry benchmarks and best practices: It can be helpful to consider industry
benchmarks and best practices when setting goals and targets. This can provide a sense of
what is achievable and help the company set ambitious but realistic goals.

Engage with stakeholders: Engaging with stakeholders, including customers,

employees, shareholders, and the broader community, can help the company understand their
perspectives on ESG issues and identify areas where the company can make a meaningful
impact.
 Review and update goals regularly: The company should periodically review and update
its ESG goals to ensure that they remain relevant and achievable. This may involve adjusting
goals based on progress made, new information and insights, and changing circumstances.

Develop an action plan: Once goals and targets have been established, the company should
develop an action plan to achieve these goals. This may involve implementing new policies and
procedures, investing in new technologies or processes, or engaging with external stakeholders.
An action plan is a detailed plan of action that outlines the specific steps that a financial trading
company will take to achieve its environmental, social, and governance (ESG) goals and
targets. Here are some steps that a financial trading company can take to develop an action
plan as part of its ESG policy:

Identify key stakeholders: It is important to identify the key stakeholders who may be
affected by the company's ESG policies and actions, including customers, employees,
shareholders, and the broader community.

Review current practices: The company should review its current practices and policies
to determine where improvements can be made to better align with ESG principles. This may
involve conducting a materiality assessment to determine which ESG issues are most relevant
to the company and its stakeholders.

Set specific goals and targets: Based on the materiality assessment and review of
current practices, the company should set specific, measurable, time-bound, and ambitious
goals and targets related to ESG performance.

Identify actions and resources needed: Once goals and targets have been established,
the company should identify the specific actions and resources needed to achieve these goals.
This may involve implementing new policies and procedures, investing in new technologies or
processes, or engaging with external stakeholders.

Develop a timeline: The action plan should include a timeline for implementing the
various actions identified. This will help ensure that the company stays on track and makes
progress towards achieving its ESG goals.

Assign responsibility: The action plan should also clearly assign responsibility for
implementing the various actions to specific individuals or teams within the company.

Monitor progress: The company should regularly monitor progress towards achieving its
ESG goals and adjust the action plan as needed. This may involve tracking key performance
indicators (KPIs) and reporting progress to stakeholders.
Implement and monitor progress: The company should implement the action plan and
regularly monitor progress towards achieving its ESG goals. This may involve tracking key
performance indicators (KPIs) and reporting progress to stakeholders.
There are several steps that Number Nufgers can take to identify and monitor progress towards
achieving their environmental, social, and governance (ESG) goals:

Identify key performance indicators (KPIs): The first step in monitoring progress is to
identify specific KPIs that can be used to track progress towards achieving ESG goals. These
may include metrics such as greenhouse gas emissions, water usage, employee retention
rates, and customer satisfaction.

Collect and analyze data: The company should collect and analyze data related to the
identified KPIs on a regular basis. This may involve tracking data internally or using external
sources, such as industry benchmarks or third-party sustainability rating agencies.

Review and report progress: The company should review the data regularly and report
on progress towards achieving ESG goals to stakeholders. This may involve publishing regular
sustainability reports or making the data available on the company's website.

Engage with stakeholders: Engaging with stakeholders, including customers,

employees, shareholders, and the broader community, can help the company understand their
perspectives on ESG issues and identify areas where the company can make a meaningful
impact.

Adjust the action plan as needed: Based on the data collected and stakeholder
feedback, the company should adjust its action plan as needed to ensure that it remains on
track to achieve its ESG goals.

Review and update goals regularly: The company should periodically review and update
its ESG goals to ensure that they remain relevant and achievable. This may involve adjusting
goals based on progress made, new information and insights, and changing circumstances.

Review and update the policy: The company should periodically review and update its ESG
policy to ensure that it remains relevant and effective. This may involve revisiting goals and
targets, as well as adjusting the action plan as needed.

There are several steps that Number Nudgers can take to review and update their
environmental, social, and governance (ESG) policies:

Assess progress towards achieving ESG goals: The company should assess its
progress towards achieving its ESG goals and targets. This may involve reviewing data on key
performance indicators (KPIs) and stakeholder feedback.
 Engage with stakeholders: Engaging with stakeholders, including customers,
employees, shareholders, and the broader community, can help the company understand their
perspectives on ESG issues and identify areas where the company can make a meaningful
impact.

Review industry benchmarks and best practices: It can be helpful to review industry
benchmarks and best practices when reviewing and updating an ESG policy. This can provide a
sense of what is achievable and help the company set ambitious but realistic goals.

Identify areas for improvement: Based on the assessment of progress, stakeholder

feedback, and industry benchmarks, the company should identify areas where it can improve its
ESG performance.

Update the policy: The company should update its ESG policy to reflect any changes or
improvements that have been identified. This may involve revising existing policies and
procedures, implementing new policies, or adjusting the action plan as needed.

Communicate the updated policy to stakeholders: The company should communicate

the updated policy to stakeholders, including employees, shareholders, customers, and the
broader community. This will ensure that everyone is aware of the company's commitment to
ESG principles and the steps it is taking to improve its performance.

Monitor and report progress: The company should continue to monitor and report
progress towards achieving its ESG goals and adjust the policy as needed to ensure that it
remains relevant and effective.

Greenhouse gas (GHG) accounting is an important aspect of environmental, social, and

governance (ESG) policy making for Number Nudgers. Here are some steps

Identify sources of GHG emissions: The first step in GHG accounting is to identify the
sources of GHG emissions within the company. This may include direct emissions from
activities such as energy use, transportation, and waste management, as well as indirect
emissions from purchased goods and services.

Establish a baseline: The company should establish a baseline for GHG emissions by
collecting data on GHG emissions from all sources. This will provide a starting point for
measuring progress towards reducing GHG emissions.

Set GHG reduction goals: Based on the baseline, the company should set specific,
measurable, time-bound, and ambitious goals for reducing GHG emissions. These goals should
align with the company's overall ESG goals and targets.

Develop an action plan: The company should develop an action plan outlining the
specific steps it will take to achieve its GHG reduction goals. This may involve implementing
new policies and procedures, investing in new technologies or processes, or engaging with
external stakeholders.

Monitor and report progress: The company should regularly monitor and report progress
towards achieving its GHG reduction goals. This may involve tracking key performance
indicators (KPIs) and publishing regular sustainability reports or making the data available on
the company's website.

Review and update the policy: The company should periodically review and update its
GHG accounting practices to ensure that they remain relevant and effective. This may involve
revising existing policies and procedures, implementing new policies, or adjusting the action
plan as needed.