Page 27 - Berita Sunway - Issue 76

ESG 101 Helps evaluate any Examines how it manages relationships NET ZER O
Looks at how a company
with employees, suppliers, customers,
safeguards the environment
and the communities in which they
operate in
environmental risks a
company might face and how
the company is managing
Workforce diversity
those risks Example:
and inclusion, inequality,
What is Environmental, Social, and Governance (ESG) criteria are a set of standards whistleblowing, health and safety,
ESG? or evaluation criteria used to assess an organisation’s impact beyond nancial Example: Environmental Social supply chain labour standards,
performance and screen potential investments.
community empowerment
Greenhouse gas Types of
ESG measures the sustainability performance, risk management and risk
mitigation of corporations. emissions, energy use, ESG criteria
waste, pollution, water
conservation,
sustainable
procurement Governance

Example:
Deals with a
company’s leadership, Board structure and actions,
executive pay, audits, shareholder voting, management
internal controls, and compensation, anti-corruption,
shareholder rights transparency and reporting
Most Common Global ESG Reporting Standards
• Sustainability Accounting Standards Board (SASB)
• Global Reporting Initiative (GRI) SOURCES
• Task Force on Climate-related Financial
Disclosures (TCFD) CFA Institute
https://www.cfainstitute.org/-/media
/documents/survey/future-of-sustain
ability.ashx
Why ESG matters Factors driving demand for ESG Investopedia
https://www.investopedia.com/terms
/e/environmental-social-and-govern
ance-esg-criteria.asp
Sustainability reporting Relevant and e COVID-19 Investors and lenders
is mandatory for all transparent ESG pandemic has focused are calling for JP Morgan Asset Management
public-listed companies reporting builds trust investors on the companies to take https://am.jpmorgan.com/lu/en/ass
et-management/per/insights/market-
in Malaysia since 2016 among stakeholders vulnerability and actions that address insights/esg-explained-7-essentials-y
resilience of the nancial ESG issues ou-need-to-know/
system, intensifying
An important indicator Creates signi cant sustainability McKinsey & Co
https://www.mckinsey.com/business-f
of a company’s health opportunities for those discussions unctions/strategy-and-corporate-fina
and long-term at the forefront of nce/our-insights/five-ways-that-esg-c
pro tability change Governments and Governments and reates-value
corporations adopting regulators are PwC Canada
the United Nations’ committed to https://www.pwc.com/ca/en/today-s
Sustainable accelerating regulation -issues/environmental-social-and-gov
Guides companies to Used to identify Development Goals on ESG reporting ernance/measure-esg-performance.ht
operate responsibly and and assess a company’s globally as the through the ml#2

deliver sustainable exposure to a range development blueprint introduction of various https://www.pwc.com/ca/en/environ
outcomes of potential risks and to achieve a better and standards and mandates mental-social-and-governance/public
opportunities arising more sustainable ations/the-importance-of-esg-measur
ement-en.pdf
from ESG future for all
The Edge Malaysia
Consumers consider Employees are https://www.theedgemarkets.com/ar
Brings value to all stakeholders instead of focusing on sustainable factors when increasingly ticle/plcs-will-be-subject-higher-sustai
increasing only shareholder value making a purchase concerned with how nability-reporting-standards-soon
the businesses they https://www.theedgemarkets.com/ar
work for, or with, are ticle/global-esg-reporting-standards
addressing ESG issues

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