Discuss in brief the following: Environment, Social, Governance Index.
CS Professional · Ethics, Governance and Sustainability · PYQS · December 2021
Discuss in brief the following: Environment, Social, Governance Index.
Answer & Explanation:
ESG describes the environmental, social and governance issues that investors are considering in the context of corporate behaviour. Integration of ESG refers to the active investment management processes that include an analysis of environmental, social, and governance risks and opportunities and sustainability aspects of company performance evaluation. 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. Key Performance Indicators: 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: Sustainability
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