ESG stands for Environmental, Social, and Governance. ESG gained traction after the United Nations published its Who Cares Wins report in 2005 and until recently, its fortunes were steadily growing
Environmental, Social and Governance (ESG) and sustainability factors have become essential considerations for businesses worldwide.
As the world transforms with the evolution of technology, climate, politics, and economics, there are interconnected practices that positively balance environmental and social goals ...​
We may have heard of the concept of corporate social responsibility (CSR) a long time ago. But in the past decade or so, we have seen CSR absent....
Corporate social responsibility (CSR) is a self-regulating business model that helps a company be socially accountable to itself, its stakeholders, and the public.
Carbon accounting plays a vital role in ESG work – both in implementing initiatives and in tracking their effectiveness.
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Diversity, equity, and inclusion are three closely linked values held by many organizations that are working to support diverse groups of individuals, including people of different races.....
ESG reporting is the disclosure of data covering business activities related to environmental, social, and governance aspects of a business.
Agriculture is the practice of cultivating natural resources to sustain human life and provide economic gain. It combines the creativity, imagination, ...
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Environmental, Social and Governance (ESG) and sustainability factors have become essential considerations for businesses worldwide.
More than seven decades have passed since the UN's first resolution on human rights. Since then, corporate sustainability has come a long way as organisations strive to tackle challenges ...
Companies have variable disclosure policies and reporting. While for listed companies, minimum accounting reporting standards are adhered to..
An ESG strategy is a business model that prioritises social responsibility while generating profits. This approach provides companies with a framework to track progress towards sustainability goals,
Environmental, social, and governance (ESG) investing refers to a set of standards for a company’s behaviour used by socially conscious investors to screen potential investments.
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The GRI Standard for Sustainable Development Reporting is an international standard system released in 2016, with the goal of assisting organizations to report on sustainable financing...
With the rapid evolution of ESG investing in the context of the ESG globalization megatrend, this is a common question in the investor community...
The Ho Chi Minh City Stock Exchange (HOSE) partnered with the German
International Cooperation Organization ...
The challenges in ESG integration across asset classes arise because different types of assets and different strategies integrate ESG using different techniques.
Regulators are convinced that engagement adds value, not just within investment portfolios but for markets as a whole...
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Changes in consumer behaviour and a shift in the national focus toward sustainability have seen a surge in packaging recycling.
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ESG has become more necessary than ever for businesses and investors as the world struggles with climate change, social...
As mandatory environmental, social, and governance (ESG) reporting disclosures
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ESG touches many parts of business operations such as supply chains, hiring practices, and facilities management so it's important to have a planned approach to understand, plan, and implement ESG activities.
A group of three factors environment, social and governance (ESG for short) is currently a strategic and urgent global megatrend for most businesses, directly affecting sustainable development in the long term.​
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Typical mainstream investment research often includes an ESG or sustainability offering, and most major investment research departments
This article provides further information on Sustainalytics and its ESG products as well as MSCI Research.
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In 2018, MSCI and Sustainalytics had the largest market shares in company-focused ESG ratings. Both rating agencies have grown by acquiring other ESG rating providers over the past decade.​​
Firms and investment teams might not have ESG factors embedded in their philosophy but still use ESG techniques within ...
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ESG integration techniques can extend across asset classes. This article concentrates on the fixed-income asset class such as bonds and depts.
After the research stage and any relevant risk and materiality mapping, investment analysts assess the impact of material financial and...
As an example, a credit analyst identifies a company that has no third-party ESG rating available but that is issuing investment-grade bonds that might be investable.
Corporate debt is now enjoying greater levels of ESG integration. In some regards, this should not be surprising.
A firm can use a multitude of approaches to integrate ESG analysis into its investment process. This section provides a summary..
Real assets (including vacant land, farmland, timber, infrastructure, intellectual property, commodities, and private real...
Screening represents the oldest, simplest approach to ESG investing. Negative...
Engagement is the process of active dialogue with a company where investors are looing for concrete change. ​​
As mentioned earlier, shareholders have the right to vote at AGMs and EGMs, and in some markets, occasionally at other investor gatherings.
Welcome to YTT Consulting's comprehensive guide on the future of business and finance in the context of Environmental, Social, and Governance (ESG) certifications.
​As mentioned earlier, shareholders have the right to vote at AGMs and EGMs, and in some markets, occasionally at other investor gatherings. In almost all cases, voting is proportionate to the percentage shareholding in the company and
Firms and investment teams might not have ESG factors embedded in their philosophy but still use ESG techniques within ...
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Our business community is under unprecedented pressure from consumers, regulators and partners to reduce environmental and social impacts while ensuring financial performance – also known as Sustainable Development or ESG.
After the research stage and any relevant risk and materiality mapping, investment analysts assess the impact of material financial and...
Growing awareness of climate change and its environmental impacts has led to an accelerated search for viable economic and social solutions to enable the transition to a low-carbon economy.
Early trading companies in the 17th century (perhaps most famously the Dutch East India Company, or VOC) were established for a specific trade voyage or a certain ...
Social factors are relevant from both a business and an investment perspective and are increasingly being incorporated into business analysis and investment decisions. In many cases, investors expect companies
The S-pillar of ESG encompasses a range of factors that can be classified as internal and external to a business. In this article, we will provide an overview of the key internal social factors that may be of interest to
ESG is an acronym that stands for Environmental, Social, and Governance. ESG gained traction after the United Nations released its Who Cares Wins report in 2005, and its fortunes have been steadily growing until recently.
Challenges from Incomplete Datasets and Identifying and Assessing ESG Data. As we can see from ESG research and techniques, many processes start with data collection ..
With the rapid evolution of ESG investing in the context of the ESG globalisation megatrend, this is a frequently asked question in the investment community, at least in emerging economies.
With a range of social trends and factors that can influence both risks and opportunities for businesses and in an investor’s portfolio, these issues should be ..
In the investment world, screening represents the simplest and oldest approach to ESG investing. Negative screening ...
Early trading companies in the 17th century (perhaps most famously the Dutch East India Company, or VOC) were established for a specific trade voyage or a certain ...
Investment institutions and investment groups may not incorporate ESG factors into their investment philosophy but still use ESG techniques in their investment process.
As we have discussed in previous articles, shareholders have voting rights at Annual General Meetings (AGMs) and Extraordinary General Meetings (EGMs), and in some markets, sometimes at other investor ...
Following the research phase as well as mapping the materiality and associated risks, investment analysts will assess the impact of material financial and ESG factors
Regulators are convinced that investment engagement adds value, not just to portfolios but to the market as a whole. In his powerful 2008 report on the financial
An investment organization can use a variety of approaches to integrate ESG analysis into its investment process. Qualitative ESG analysis is likely to be used in investment processes that rely on
Sustainalytics is a provider of ratings, corporate governance and ESG research. As of 2018, it is considered a leading ESG ratings provider and in 2020,
As we have illustrated in the previous article, the UK has been a model for modern governance for the world.
As we have discussed in previous articles, shareholders have voting rights at AGMs and EGMs, and in some markets, occasionally at other investor meetings.
ESG investing in real assets (including land, agricultural land, timber, infrastructure, intellectual property, commodities and private real estate) has certain advantages and challenges compared to investing in equity and corporate fixed-income investments.​
Engagement is the process of actively engaging with a company where the investor is seeking specific change. This can often be a lengthy process and involve repeated contacts with senior company representatives.
The world's first formal corporate governance code appeared in the United Kingdom in 1992. The Cadbury Committee was convened in May 1991 by the Financial Reporting Council, the London Stock Exchange and the accounting profession to review what it called "the financial aspects of corporate governance". Its formation was a result of the Caparo and Polly Peck ...
Corporate debt is currently enjoying a higher level of ESG integration. In some ways, this is not surprising. Equity issuers tend to issue debt as well. There is growing evidence that ESG integration approaches make a significant difference in investment
For example, a credit investment analyst identifies a company that is not ESG rated by a third party and is issuing investment grade bonds. In this case, the analyst would conduct their own internal ESG assessment.
​Corporate governance is the structure and process for overseeing the business and management of a company. Derived from the Latin gubernare, meaning to steer a ship, governance combines guidance and control.
Welcome to YTT Consulting's comprehensive guide on the future of business and finance in the context Stewardship is often used as
Of the three E-S-G factors, Governance (G) is the factor most commonly considered by traditional investment analysts. A 2017 CFA Institute ESG survey found that 67% of global respondents considered Governance in their investment analysis and decision-making (up from 64% in 2014), ahead of Environmental (E) and Social (S) factors (both at 54%). In the EMEA region,
As we know, the UK is a global model for corporate governance principles as well as investment management, with engagement being a key aspect of investor stewardship. Stewardship is a broad term for an investor acting as a good long-term owner of assets, standing in the shoes of their clients to ensure that value is added or
Continuing from the previous article, as you may know, the UK has been a model for modern governance for the world. Principle N of the UK Corporate Governance Code, last revised in 2018, states:
Automobile industry is a one of the biggest contributors of GHG emissions across the globe and hence there has been a conscious effort from automobile manufacturers to mend their ways and go sustainable. Here are few examples of ESG reports.
This Guide comprises a two-tier approach that has established a list of 61 context-based indicators that aims to: facilitate trend analysis; contextualize impacts or performance with thresholds and norms;
The renewable energy sector is setting new standards in ESG reporting by highlighting their impact on reducing carbon emissions. Companies like NextEra Energy provide detailed metrics on energy production from renewable sources, significantly showcasing their contribution to environmental ...
When greenwashing, companies project an eco-friendly image which is untrue. Sometimes the disguise is hard to detect but in other cases the veneer strays so far from the truth that you begin to question the sobriety of the PR & Marketing teams behind the greenwash.
In the area of ​​sustainability, both at the national and organisational level, capacity building means building the skills and capabilities to drive sustainable change. But it all starts with awareness.
That can often be a challenge – even more so when your company is not focused on sustainability and your colleagues don’t ...
What is Carbon Accounting
ESG stands for Environmental, Social, and Governance. ESG gained traction after the United Nations published its Who Cares Wins report in 2005 and until recently, its fortunes were steadily growing
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