Describe the following terms: 'Environment, Social, Governance (ESG) Index'.

CS Professional · Governance, Risk Management, Compliances and Ethics · PYQS · December 2019
Describe the following terms: 'Environment, Social, Governance (ESG) Index'.

Answer & Explanation:

Environment, Social, Governance (ESG) Index: ESG describes the environmental, social and corporate governance issues. The ESG index employs a unique and innovative methodology that quantifies a company's ESG practices and translates them into a scoring system which is then used to rank each company against its peers in the market. Its quantitative scoring system offers investors complete transparency on Environmental, Social & governance issues of a company. The ESG Performance indicators are: Environment - Energy use and efficiency, Greenhouse gas emissions, Water use, Use of ecosystem services - impact & dependence and Innovation in environment friendly products and services. Social - Employees, Poverty and community impact and Supply chain management. Governance - Codes of conduct and business principles, accountability, transparency and disclosure and Implementation - quality and consistency.

Topics: ESG

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