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ESG
INTRO & BASICS
Dr. Salem Baidas
ENVIRONMENTAL SUSTAINABILITY SLIDESHOWS FROM
S2ADESIGN.COM
S2ADESIGN.COM
AGENDA
DEFINITION
01
ASPECTS
02
CHALLENGES
03
UN POLICY
04
INFOGRAPHICS
05
Esg basics
Environmental, Social and Governance (ESG)
is a Framework that Helps Investors Evaluate
how a Company Manages Risk & Opportunity
Around Sustainability Issues.
Esg metrics
Non-Financial Indicators that Evaluate
Companies' ESG Performance. They are
Quantitative, such as GHG Emissions;
and Qualitative, such as Diversity.
The Public Disclosure of ESG Data. Its Purpose is to Shed Light on a
Company’s ESG Activities and Improve Transparency with Investors.
Esg reporting
A Structured Approach to ESG Reporting. Using a Framework
Produces Measurable, Actionable, and Credible Results.
Esg framework
They Translate ESG Framework Principles into Action by Specifying
Factors such as Metrics, Methodologies, and Reporting Formats.
Esg standards
Meeting or Exceeding ESG Guidelines Established by Compliance
Frameworks and Regulatory Bodies.
Esg compliance
Also Called an ESG Score, Provides a Benchmark for Investors to
Evaluate a Company’s ESG Performance and Compare it to Others.
Esg rating
AZEUSCONVENE.COM
Definitions
Esg reporting
ENVIRONMENT SOCIAL GOVERNANCE
ASPECTS
Esg reporting
LAW.HARVARD.EDU
 Energy Efficiency.
 Deforestation and Biodiversity.
 GHG Emissions and Carbon
Footprint.
 Climate Change and Pollution
Mitigation.
 Resource Consumption and
Waste Management.
EnvironmentalASPECT
Esg reporting
 Diversity, Equity, and Inclusion
(DEI).
 Labor Standards and Ethical
Treatment.
 Wages and Benefits.
 Human Rights.
 Community Relations.
 Health and Safety.
LAW.HARVARD.EDU
Social ASPECT
Esg reporting
 Corporate Board Structure and
Diversity.
 Sustainability Oversight and
Compliance.
 Political Contributions and
Lobbying.
 Bribery and Corruption.
 Philanthropy.
LAW.HARVARD.EDU
Corporate governanceASPECT
Esg reporting
government INVESTORS CUSTOMERS
EMPLOYEES SUPPLIERS REGULATORS
LENDERS insurers COMMUNITIES
FORBES.COM
stakeholders
Esg reporting
improved
reputation
resilient &
SUSTAINABLE
Attractive
toinvestors
IMPROVED
PERFORMANCE
COMPETITIVE
ADVANTAGE
Capacity building
IBANET.ORG
advantages
Esg reporting
NOT MANDATORY
Regulations
CONSTANTLY changing
GREENWASHING
EXPENSIVE
NOUniform
standard
COMPLEX requiring
specialized EXPERTISE
IBANET.ORG
Challenges
Esg reporting
Develop a Clear Strategy In-Line with Objectives. It Should be Based
on a Thorough Understanding of the Company’s Stakeholders.
strategy
Establish Metrics Relevant to the Industry. Metrics Should Be
Measurable, Reliable, and Comparable to Other Companies.
metrics
Regularly Collect and Analyze Data to Track Performance Against
Metrics, Ensuring Accuracy and Reliability.
data
Engage with Stakeholders on ESG Issues to Understand Their
Expectations and Concerns and Build Trust and Loyalty.
Engagement
Integrate ESG Practices into Operations to Ensure that Compliance
is Prioritized Across All Aspects.
integration
IBANET.ORG
Implementation steps
Esg reporting
Task force
A 31-Member Task Force Set up by
the Financial Stability Board in 2015.
It Released 11 Recommendations
Regarding the Info that Companies
Should Disclose and Report About
Climate Change Risks.
FSB-TCFD.ORG
Task Force on Climate Related
Financial Disclosures
PRINCIPLES
Launched in 2000, the UN Global
Compact is a Corporate Sustainability
Initiative Aimed at Aligning Business
Strategies with 10 Principles on the
Environment, Anti-Corruption, Human
Rights, and Labor Practices.
UNGLOBALCOMPACT.ORG
United Nations Global Compact
ESG Corporate Initiative
initiative
Launched in 2009, the Sustainable
Stock Exchanges (SSE) Initiative, is a
Platform Aimed at Enhancing Corporate
Transparency and Performance on ESG
Issues. The SSE is Coordinated by UN
Global Compact, UNCTAD, and UNDESA.
SSEINITIATIVE.ORG
Dept. of Economic & Social Affairs
Sustainable Stock Exchanges
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text can be replaced with your own text.
9.7
6.6
4.1
3.6
94
92
90
88
81
UK
South Africa
Japan
Spain
France
ASSETS.KPMG.COM
by country(percent) 2022
ENVIRONMENTAL RISK REPORTING WORLDWIDE
95
92
81
80
77
UK
South Africa
France
Japan
Sweden
by country(percent) 2022
social RISK REPORTING WORLDWIDE
ASSETS.KPMG.COM
95
91
87
84
76
UK
South Africa
Japan
Thailand
Sweden
by country(percent) 2022
governance RISK REPORTING WORLDWIDE
ASSETS.KPMG.COM
95%
Of UK Companies
Reporting on Social
Risks within the ESG
Framework.
95%
Of UK Companies
Reporting on
Governance Risks
within the ESG
Framework.
94%
Of UK Companies
Reporting on
Environmental Risks
within the ESG
Framework.
ASSETS.KPMG.COM
ESG RISK REPORTING WORLDWIDE IN 2022
Key highlights
Share
FACTOR
63%
Governance
61%
Climate risk
41%
Diversity, equity, and inclusion
41%
Human rights practices
39%
Environmental performances
EY.COM
(share)2022
ESG investmentfactors worldwide
Env impact
THIS IS A
Social impact
THIS IS A
Higher revenue
52% 43% 36%
(percent)2022
ESG investmentGOALS worldwide
SCHRODERS.COM
Share
Fund type
56%
Sustainablefunds thatfocus on financial returns
48%
Funds with sustainabilitybenefitse.g. social benefits
39%
A fund that explicitly impacts people orthe planet
21%
A fund that contributesa solution to a specific issue
SCHRODERS.COM
By Fund Type (Percent) 2022
MOST POPULAR ESG INVESTMENTS WORLDWIDE
21
15
14
14
12
9
8
5
Quality Education
No Poverty
Zero Hunger
Clean Water
Good Health
Equality Increase
Climate Action
Gender Equality
SCHRODERS.COM
(percent)2022
ESG investmentEXPECTED outcomes worldwide
S2ADesign.com