What are the Environmental, Social, and Governance (ESG) standards – part one
ESG (Environmental, Social, and Governance) standards refer to the set of criteria or guidelines that companies and investors use to measure and manage their Environmental, Social, and Governance (ESG) performance.
Provide a framework
These standards provide a framework for responsible business practices and sustainability. Here’ we first look at the Environmental (E) Standards.
Core focus
These standards focus on a company’s impact on the environment and how it manages environmental risks, including:
1. Climate Change Policies:
Reduction of greenhouse gas (GHG) emissions, energy efficiency, and strategies for mitigating climate risks.
2. Sustainable Resource Use:
Efficient use of water, energy, and raw materials.
3. Waste Management:
Reduction, reuse, and recycling of waste; proper handling of hazardous materials.
4. Biodiversity and Ecosystem Impact:
Responsible land use, protection of biodiversity, and avoidance of deforestation or habitat destruction.
5. Pollution Control:
Measures to reduce air, water, and soil pollution, including the responsible handling of chemicals.
6. Environmental Disclosure:
Transparent reporting of environmental impacts and performance in line with frameworks such as the Task Force on Climate-related Financial Disclosures (TCFD) or Global Reporting Initiative (GRI).
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