Environment
Environmental criteria consider how a company performs as a steward of
nature.
Society
Social criteria examine how it manages relationships with employees, suppliers, customers, and the communities.
Governance
These last criteria deal with a company’s leadership, executive pay, audits, internal controls, and shareholder rights.
What is ESG?
This acronym stands for Environmental, Social, and Governance. Investors are increasingly applying these extra-financial factors as part of their analysis process to identify material risks and growth opportunities. Examples of ESG risks include human rights violations, illegal logging activities, or severe corruption allegations. Alternatively, these factors can also present opportunities to induce positive change, such as increased requirements for renewable energy investments, offering solutions for emerging markets. Integrating ESG into operations is the first step on a long road to sustainability and stability: contact us to get your business on this path.
CDP – Disclosure Insight Action
This international organization is a not-for-profit charity that runs the global disclosure system for investors, companies, cities, states and regions to manage their environmental impacts. The vision of CDP is to see a thriving economy that works for people and planet in the long term, driving ESG disclosure among corporates and facilitating sustainable finance in order to focus investors and companies on taking action to measure and control their environmental impact.
PRI – Principles for Responsible Investment
This is the world’s leading proponent of responsible investment. The six Principles for Responsible Investment are a voluntary and aspirational set of investment principles that offer a menu of possible actions for incorporating ESG issues into investment practice. The PRI works with signatories to identify key environmental, social and governance issues in the market, and coordinates engagements, publications, webinars, podcasts and events to address them.
