A weekly update on the latest “no-fluff” insight and analysis of the energy industry.
ESG is vital in financial services for managing non-financial risks, ensuring regulatory compliance, meeting investor demand for sustainable practices, enhancing reputation and trust, and driving long-term value creation.
ESG impacts corporate governance by enhancing transparency and accountability, identifying and mitigating risks, attracting investors through demonstrated sustainability, ensuring regulatory compliance and improving corporate reputation, which boosts customer loyalty and employee retention.
ESG performance is measured using quantitative metrics (e.g., carbon emissions, diversity ratios), qualitative assessments (e.g., social responsibility, labor practices), ESG reporting frameworks (e.g., GRI, SASB) and third-party ratings (e.g., MSCI, Sustainalytics).
Common challenges include multiple frameworks, evolving regulations, complex data management, quantifying ESG risks and ensuring comparability across companies and industries.
