Disclosing information on all environmental policies.Īs a result, positive outcomes such as decreasing costs and improving profitability due to better energy efficiency are expected.Having responsible practices across the value chain such as no deforestation policies or even animal welfare.Managing waste responsibly (like adopting circular economy principles).Using renewable energies that emit fewer GHG, are less polluting, and contribute less to climate change.
Examples of companies’ ESG factors can be the following: They are based on the premise that business activities have the potential to create environmental risks for ecosystems, water, air and human health.
ESG Sustainable Investing: Environmental FactorsĮnvironmental factors are about a company’s impact on the environment.
Responsible investors assess corporations using ESG criteria as a framework to screen investments or assess risks in investment decision-making. Let’s find specific examples of how companies can act on the 3 ESG factors – environmental, social and governance.