1. ESG investing versus sustainable investing
Due to a lack of standardisation in terminology, there is general confusion in ESG investing vs sustainable investing, and which is the best strategy for investors to pursue.
ESG investing considerations allow market participants to consider ways in which environmental, social, and governance (ESG) opportunities and factors have an impact on a company’s performance. The level of financial performance is maintained while applying sustainability principles. The emphasis is on long-term value by using ESG factors to identify opportunities and mitigate risks.
Sustainable investing, also known as socially responsible investing (SRI), produces adequate or sub-market financial returns, as a result of placing a premium on positive social change. Financial returns are more of a secondary consideration, while the investors’ moral values take more of a precedence.
2. What are the key metrics for measuring ESG?
- Environmental: CO2 emissions, water usage, waste treatment, business travel, environmental incidents
- Social: diversity policy, sick day policy, employee pay, voluntary turnover, anti-slavery policy
- Governance: code of conduct, anti-corruption policy, cyber-security, board composition
3. What is ESG benchmarking?
4. What are ESG frameworks?
5. How do we develop a global approach to ESG?
6. Why 2022 is the key year for ESG reporting
7. ESG data: What is it? Where to get it?
8. Spotting greenwashing and avoiding it
9. Liabilities associated with poor ESG practices
ESG is a broad and all encompassing area and there is a lot of noise to cut through to get to the right information. Having a trusted advisory service, with the experience and industry knowledge will help you do this, and save you time and money in the process.
If you are looking for guidance on becoming ESG compliant in your business, please contact Jacqueline Faridani at jaf@prospectlaw.co.uk
Dr Jacqueline Faridani
Prospect Law is a multi-disciplinary practice with specialist expertise in the energy and environmental sectors with particular experience in the low carbon energy sector. The firm is made up of lawyers, engineers, surveyors and finance experts.
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