ESG actions offer higher equity returns, reduction of costs & increased operational efficiency!
It provides a snapshot of the business’s impact in these three areas for investors, customers and wider stakeholders.
Globally, ESG frameworks and regulations are ever evolving and increasingly gaining higher significance.
Each parameter of the framework has the following weightage:
Coverage of ESG
The ESG framework covers a wide array of topics against which the snapshot needs to be prepared.
In order to introduce a certain level of standardization, a few common elements are identified under their respective category.
With the increased awareness and dire need, more and more common elements shall be introduced.
The Environment component of ESG looks at the impact of resource consumption on the environment ranging from Carbon Footprint to Waste Management and more.
The Social component of ESG analyses how the organization interacts with communities where it operates via internal policies related to labor, diversity and more.
The Governance component of ESG relates to internal practices and policies that lead to effective decision making, legal compliances and more.