ESG-A.1.1
The ESG reporting landscape is in a state of constant change, as companies now face mounting pressure from investors, regulators, and other stakeholders to disclose information relating to their stance on climate change, social issues, and governance factors. This heightened interest has led to a surge in sustainable investments such as ESG funds and Green Bonds, as more and more investors recognise the significance of taking into account the financial and economic ramifications of environmental, social and governance ("ESG") issues when making investment decisions. ESG factors also have an influence on a company's capacity to execute its business plan and produce value in the long run. ESG refers to the following:
(a) Environmental: This factor includes a company's impact on the natural environment, such as its carbon emissions, energy use, waste management, and water usage.
(b) Social: This factor encompasses a company's impact on society, including its treatment of employees, customer relations, community engagement, and human rights policies.
(c) Governance: This factor relates to a company's internal management and oversight, including issues such as executive compensation, board diversity, and transparency.
Added: January 2024