ESG benefits and gains are mentioned in this for reference of the company

1. BEYOND PROFITS: ESG
INVESTING RESHAPES THE
FINANCIAL FUTURE
Presentation for LL.M
Contemporary Issues
by Taresh Dua, 23222210,
Christ School of Law

2. ABSTRACT
Financial success has long been synonymous with maximizing profits. But a seismic shift is
underway, as investors increasingly consider environmental, social, and governance (ESG)
factors alongside traditional financial metrics. This tectonic change promises to redefine the
very meaning of success in the financial world, paving the way for a more sustainable and
equitable future.
Keywords: Seismic shift, tectonic change, redefine success, values alignment, positive impact,
legacy, stakeholder engagement.

3. SCOPES FOR CHANGE IN ESG
First let’s get to know what is ESG and why are we talking about it ?
Environmental criteria
Environmental criteria may include a company’s energy use, the waste and pollution
it creates, how it conserves natural resources, and the way it treats animals.
Social criteria
Social criteria examine the company’s business relationships. Does the company
have a high regard for employee health and safety? Does the company allocate a
percentage of its profits to its local community? Do company employees engage in
volunteer work? Are other stakeholders’ interests taken into account?

4. CONTINUING WHY IS IT IMPORTANT
Governance
Investors looking at a company’s ESG will want to see that it is accurate and
transparent in its accounting and reporting methods. Investors will also look
at how a company treats its shareholders and their right to vote on important
issues. Investors will seek assurances that the company doesn’t engage in
illegal practices and avoids conflicts of interest when it chooses its board
members.
What on earth is this ESG doing and why should I CARE and keep a
score?

5. WHAT ESG REFLECTS ABOUT
THE COMPANY?
Lack of ESG can hurt a company’s value!
Investors now understand that environmental, social, and governance criteria
go beyond ethical concerns. With robust ESG criteria, companies can avoid
practices that involve risk. For example, Volkswagen’s emissions scandal
rocked the company’s share price, and investors lost billions.
Investors and investment firms look for ESG-minded companies and
financial services companies like Goldman Sachs and JPMorgan Chase now
publish annual reports that review the ESG approaches of various
companies.

6. OVERVIEW FOR OPEN PILLARS
OF ESG
ESG investing rests on three pillars:
•Environmental: This pillar examines a company's impact on the planet, considering factors like carbon
emissions, resource conservation, and pollution control. In an era of climate change, companies with
strong environmental practices are deemed more resilient and future-proof, attracting investors concerned
about long-term sustainability.
•Social: This pillar delves into a company's relationship with its stakeholders, including employees,
communities, and customers. Fair labor practices, diversity and inclusion efforts, and responsible supply
chain management all come under the social lens. Companies prioritizing employee well-being and ethical
community engagement foster happier workforces, mitigate reputational risks, and attract a wider talent
pool.
•Governance: This pillar focuses on a company's internal practices and decision-making processes. Board
composition, executive compensation, transparency, and anti-corruption measures are closely scrutinized.
Strong corporate governance promotes ethical leadership, reduces operational risks, and builds trust with
shareholders, creating a stable and sustainable business model.

7. Symbol Industry ESG score Comp Rtg RS Rtg EPS Rtg SMR Rtg
3-yr EPS
growth
rate
ROE
Last qtr
sales %
chg
Last qtr
EPS % chg
Div yield
1 Microsoft (MSFT)
Computer
Software
- Desktop
72.76 98 89 96 B 18 39 8 21 0.80
2
Applied
Materials
(AMAT)
Electronic
s -
Semicond
uctor
Equipmen
t
71.71 94 91 85 A 29 55 -1 -2 0.80
3
Woodwar
d
(WWD)
Aerospace
/Defense
71.69 97 93 85 B -9 8 30 114 0.70
4
Verisk
Analytics
(VRSK)
Commerci
al
Services -
Market
Research
71.58 93 91 89 A 2 35 10 19 0.50
5
Mastercar
d
(MA)
Finance -
Credit
Card/Pay
ment
Processin
g
71.57 95 87 86 A 22 152 14 13 0.50

8. BENEFITS OF ESG GOES
BEYOND DIVIDEND
Advantage 1
While financial returns remain crucial, ESG investing
offers a compelling value proposition. Studies
consistently show that companies with robust ESG
practices tend to outperform their peers over the long
term.
Advantage 2
This advantage stems from various factors such as
reduced operational costs, enhanced brand
reputation, improved risk management, and access to
new markets and investor pools.
Moreover, for individual investors, ESG investing
aligns their financial goals with personal values,
enabling them to contribute positively to the world
while generating meaningful returns.

9. ESG Challenges

10. CHALLLENGE TO ESG
Data quality and standardization issues can hinder accurate assessments, and concerns
about greenwashing (exaggerated or misleading ESG claims) exist. Regulatory frameworks in
some markets lack sufficient rigor, creating uncertainty.
However, these challenges are being addressed. Global initiatives are working to improve
data quality and comparability, while regulatory landscapes are evolving to promote
transparency and accountability.
Ultimately, ESG investing is not just about choosing stocks; it's about shaping a more
sustainable and equitable future. By directing capital towards companies committed to
responsible practices, investors can drive positive change across the globe

11. CHALLLENGES
.
From transitioning to clean energy to fostering diverse workplaces, from respecting human
rights to mitigating environmental risks, ESG investing holds the potential to create a win-win
scenario: financial returns for investors and a healthier planet for all.

12. CONCLUSION TO ESG INVESTING
Companies prioritizing environmental responsibility, social well-being, and ethical governance
will not only attract investors but also contribute to building a more resilient and sustainable
future.
For investors, embracing ESG principles presents an opportunity to align their values with
their portfolios, generate meaningful returns, and leave a positive legacy.
The future of finance lies not just in maximizing profits, but in leveraging capital for good, and
ESG investing is leading the way towards a brighter tomorrow

13. Thank You