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The Environmental Social & Governance (ESG) Buzz

Environmental Social
What is ESG? o Climate Change Strategy o Equal Opportunity
✓ Environmental, social, and governance (ESG) criteria are a o Biodiversity o Health & Safety
set of standards for a company’s operations that socially o Energy Efficiency o Human Rights
conscious investors use to screen potential investments o Carbon Intensity o Child Labour
o Water Conservation o Freedom of
✓ Investors are increasingly applying these non-financial o Environmental association
factors as part of their analysis process to identify material Management System Environmental o Customer
risks and growth opportunities Responsibility
✓ Environmental criteria focuses on impact on climate
change, Social criteria focuses on managing relationships
with all stakeholders and Governance focuses on business
ethics & necessary compliance
ESG

Why so much buzz about the ESG? Social Governance


❑ Post Covid-19 the new generation investors are getting
vocal and interested in what’s affecting the world, and
considering corporate contributions to society as a
parameter for investment decisions Governance
❑ Also, ESG will be more likely to replace CSR; as ESG is a, o Business Ethics
fully integrated strategic objective that’s closely o Managing
Despite of organizations going gung-ho towards Compliance
connected to the mission of the company whereas CSR
ESG few questions needs attention o Board
was often a disconnected department with limited Independence
resources 1. How ESG is impacting the common man & its roles?
o Executive
❑ Apart from this many mutual funds, brokerage firms, and 2. Does MSMEs to be persuaded to follow ESG norms?
Compensation
3. What mechanisms are being developed to ensure that ESG
robo-advisors now offering products that employ ESG o Shareholder
shouldn’t just remain a paper exercise?
criteria Democracy

Abhinav Sengupta | MBA in Energy & Infrastructure & B.Tech in Mining & Executive Diploma in Business Valuation | Email : abhinavsengupta85@gmail.com | Phone : +919016047552

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