Services-2

Environmental, Social, Governance (ESG)

 

 

 

 

Environmental, social and governance (ESG) is a framework used to assess an organization's business practices and performance on various sustainability and ethical issues. It also provides a way to measure business risks and opportunities in those areas. It has three pillars. 
Geotropic offers these services of ESG.
Contact Us

Environment

Environmental factors involve considerations of an organization's overall effect on the environment and the potential risks and opportunities it faces because of environmental issues, such as climate change and measures to protect natural resources. Examples include:
  • Energy consumption and efficiency.
  • Carbon footprint, including greenhouse gas emissions.
  • Waste management.
  • Air and water pollution.
  • Biodiversity loss.
  • Deforestation.
  • Natural resource depletion. 

Social

Social factors address how a company treats different groups of people and its social impact, including employees, suppliers, customers and community members. The criteria used include the following examples:
  • Fair pay for employees, including a living wage.
  • Employee experience and engagement.
  • Workplace health and safety.
  • Fair treatment of customers and suppliers.
  • Customer satisfaction levels.
  • Community relations, including the organization's connection to and impact on the local communities in which it operates.
  • Support for human rights and labor standards.

Governance

Governance factors examine how a company polices itself, focusing on internal controls and practices to maintain compliance with regulations, industry best practices and corporate policies. Examples include the following:
  • Company leadership and management.
  • Board composition, including its diversity and structure.
  • Financial transparency and business integrity.
  • Regulatory compliance and risk management initiatives.
  • Ethical business practices.
  • Rules on corruption, bribery, conflicts of interest, and political donations and lobbying.
 
Resource-intensive industries and those that have large environmental impacts can greatly benefit from ESG efforts for examples:
  1. Energy Sector: including Oil and gas and Renewable energy companies.
  2. Manufacturing Industry: to improve cost savings, operational efficiency and reduce waste
  3. Agriculture Industry: to improve yield and reduce environmental affects
  4. Supply Chains: focus on more sustainable sourcing, and carbon footprints reduction