This document discusses the role of ESG (environmental, social, and governance) factors in business transformation. It explains that the E, S, and G pillars are increasingly important to investors, clients, and businesses worldwide as risks related to them can impact companies. The environmental factor considers a company's environmental impact, social looks at relationships with stakeholders, and governance examines how ethically and transparently a company is run. The document concludes that investment strategies incorporating ESG criteria can help businesses reduce risks and take advantage of opportunities, and that ESG, particularly environmental and social factors, significantly impacted industry portfolio returns during the COVID pandemic.

1. Introduction
• benefits for organizations, financial backers, and different partners
• company's performance and impact
• toward reasonable and proficient key strategies

2. Understanding Role of ESG in business
transformation
• Enviornment (E): This viewpoint is based on an organization's environmental impact. It
incorporates ideas such as the impact of carbon dioxide, energy efficiency, waste
management, water use, contamination, and other common behaviors. Organizations
are assessed based on their dedication to effective procedures and their efforts to limit
adverse effects on a regular basis (Afanas’ ev, M. P., & Shash, N. N. (2022).
• Social (S): The social component evaluates how an organization manages its relationships
with its clients, organizations, employees, and other partners (Kwilinski, A., Lyulyov, O., &
Pimonenko, T. (2023).. Work practices, fundamental freedoms, variety and thought,
agent flourishing, neighbourhood, and the overall impact on society are just a few of the
topics it covers.
• Governance (G): Organization refers to the frameworks and strategies implemented to
guarantee that an association is governed in a morally sound, transparent, and
accountable manner. Zhong, Y., Zhao, H., & Yin, T. 2023 said that the association and
opportunity of the top administrative personnel, pioneer salary, financial backer honors,
commitment to morally imperative ways, and the appropriateness of internal controls
are all considered key organizational characteristics.

3. Discussion and conclusion
• Organizations are gradually moving away from short-term profitability and
toward longer-term value creation as a result of the worldwide trend towards
sustainability and ethical issues.
• Risks related to the environment (E), society (S), and corporate governance (G)
are becoming increasingly significant for businesses worldwide Cohen, G. (2023,
among clients, investors, and the business community at large.
• Investment strategies that incorporate ESG criteria can help reduce ESG risks and
take advantage of associated possibilities. Jinga, P. 2021 sates that these
techniques vary depending on the business ESG policy, the chosen investment
strategy, and the market allocation of investment funds.
• The returns of industry portfolios during this epidemic of COVID are substantially
explained by ESG. The main forces behind the trends that have been noticed are
the Environmental and Social pillars of the ESG, and the influence of these pillars
differs depending on the industry.

4. Refrences
• Afanas’ ev, M. P., & Shash, N. N. (2022). ESG Transformation in the Corporate
Sector: Systematizing the Global Approach. Studies on Russian Economic
Development, 33(6), 707-715.
• Boldeanu, F. T., Clemente-Almendros, J. A., Tache, I., & Seguí-Amortegui, L. A.
(2022). Is ESG relevant to electricity companies during pandemics? A case study
on European firms during COVID-19. Sustainability, 14(2), 852.
• Cohen, G. (2023). ESG risks and corporate survival. Environment Systems and
Decisions, 43(1), 16-21.
• Díaz, V., Ibrushi, D., & Zhao, J. (2021). Reconsidering systematic factors during the
COVID-19 pandemic–The rising importance of ESG. Finance Research Letters, 38,
101870.
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5. Thank you