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Introducing ESG FINAL

ESG, which stands for Environmental, Social, and Governance, is a framework used to evaluate companies based on their sustainability, treatment of people, and corporate management practices. It is closely linked to achieving net zero carbon emissions, as investors increasingly expect businesses to commit to sustainability goals. Implementing an ESG strategy can enhance a company's performance, reputation, and ability to attract funding, while a structured approach to ESG can help businesses communicate their values and progress effectively.

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10 views6 pages

Introducing ESG FINAL

ESG, which stands for Environmental, Social, and Governance, is a framework used to evaluate companies based on their sustainability, treatment of people, and corporate management practices. It is closely linked to achieving net zero carbon emissions, as investors increasingly expect businesses to commit to sustainability goals. Implementing an ESG strategy can enhance a company's performance, reputation, and ability to attract funding, while a structured approach to ESG can help businesses communicate their values and progress effectively.

Uploaded by

guillerux
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What is ?

ESG stands for Environmental,


Social and Governance.
ESG measures can be used to evaluate companies on Environmental covers considerations such as
how sustainable they are, measure their performance a business’s carbon emissions, destruction of
plants and habitats (biodiversity) or pollution
and material exposure across environmental, social and and issues such as clean water scarcity, rising
governance factors and ultimately determine how sea levels and weather catastrophes caused by
desirable an organisation is from a funding perspective. climate change.
Social covers human factors and how
companies treat their people and the societies
in which they operate. Attention is focused
on matters such as social equality, employment
relations, fair labour practices, child labour,
consumer protection, health and safety and
diversity and inclusion.
Governance focuses on corporate management
and examines how well managed a company
is. It deals with a company’s leadership, audits,
internal controls, shareholder rights and Board
matters such as executive pay and succession.
Why does ESG matter for
society and the world?
Meeting sustainability goals –
measured, monitored and reported
through a robust and credible
How does ESG fit with ESG framework – will preserve the
net zero? world that we live in and ensures
a fairer, better world for all.
ESG, sustainability and net zero
are closely linked. Net zero means
achieving a balance between
carbon emissions produced and
their removal from the atmosphere.
Banks and investors across
the financial sector expect a
commitment to net zero from their
clients and a pathway to how this
will be reached.
Why does it matter to my business?
Performance – Embedding an ESG culture, strategy and process into your business
can enhance performance and outcomes. Improving communications within and
outside your organisation brings welcome transparency appreciated by stakeholders.

Brand and reputation – Scoring well against ESG measures can enhance your
reputation, brand and therefore demand for your products and services.
ESG is an opportunity to demonstrate your values and behaviours in a positive way.
With an increasingly purpose-driven society, transparency around ESG will put your
business front of mind for future employees, customers, investors and
other stakeholders.

Ability to fundraise/borrow – Investors evaluate opportunities


against ESG criteria. ESG factors are quickly moving into
the investment and banking mainstream and are
expected to become embedded across the board.
Businesses found wanting and/or failing to
communicate will be penalised.
How do I make a start?
There are five key steps to starting your ESG journey:

Discovery/data – define what you are Communications – communicate your


going to measure and gather data. goals and progress to all stakeholders
both internal and external. Producing a
sustainability report and incorporating
Strategy and policy – develop your
sustainability metrics into your investor
strategy and associated policies.
communications demonstrates that you
mean business in tackling ESG.
Processes – reflect strategy in your
organisational processes.

Reporting – report against recognised


ESG frameworks where you can be
compared to peers but also offers the
opportunity to display what you stand
for as a business.
Where can I get more information?

If you’d like to know more about anything from starting your


ESG journey, to communicating to investors, contact
Social Invest director, Luke Cross at [email protected]

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