Environment Social Governance (ESG) – It’s major emerging field to save our planet for better tomorrow.
A. Environmental factors refer to an organization’s environmental impact & risk management practices. These include direct & indirect greenhouse gas emissions, management’s views over natural resources and the firm’s overall resiliency against physical climate risks.
B. Social – It refers to an organization’s relationships with stakeholders. Examples of factors that a firm may be measured against include human capital management i.e. fair wages and employee engagement, plus also an organization’s impact on the communities in which it functions.
C. Corporate Governance – refers to how an organization is led and managed. ESG analysts seek to understand better how leadership’s incentives are aligned with stakeholder expectations, how shareholder rights are viewed and honoured, what types of internal controls exist to promote transparency and accountability on the part of leadership