Waterman Australia

 

Environmental, Social, and (Corporate) Governance ESG, Effluent treatment Practices to improve ESG profile

The pursuit of sustainability is altering our lifestyles. In recent years, environmental, social, and governance (ESG) issues have dominated many investment decisions. In addition to benefiting the environment and making society more equitable and inclusive, evidence shows that investment made with sustainable financial analysis actually provide superior returns to investors. Sustainable finance is the method of taking environmental, social, and governance issues under considerations while making investment decisions, leading to long-term investments in sustainable economic projects and programs. Its growth has been fuelled by investors’ desire to have an impact on the environment and society in addition to the financial performance of their investments. Social

 

In recent years, businesses have raised their responsible investing considerably. The Environment, Social and Governance (ESG) metric is one of the instruments from this development. Investors who evaluate a company’s style of doing business, as well as its influence on the environment and engaged people, use ESG ratings to grade it. These scores are based on factors in the environmental, social, and governance categories.

Environmental

Environmental factor comprises of rating the company’s ability in conservation of natural resources and biodiversity. Some of the prime examples of factors considered for evaluating company’s E in ESG are usage of type of energy sources, water and waste management system, control measures for air or water or effluent pollution emerging from its activities, deforestation/afforestation activities, and action and initiatives on climate change issues.

Social

The social factor evaluates businesses impact on various stakeholders and concerned people. This factor delineates company’s action and performance towards client satisfaction, their data privacy and protection, gender and diversity in workforce, labour rights, employee relations, and its community engagement.

Governance

A set of governance standards must be followed when running a firm. In the context of ESG, governance refers to how a company is run by those in positions of power at the top. Do the company’s senior management and board of directors look out for the interests of the company’s many stakeholders, such as employees, suppliers, shareholders, and customers? Their policies against instance of bribery and corruption or lobbying are some of the factors evaluated.