What is ESG

Sustainable finance is interested in sustainability, either for reasons of risk management, or for value-creation. Sustainability is represented by topics, for example:

Environment

  • Climate change

  • Energy transition

  • Water

  • Air

  • Biodiversity

  • Product security

  • Land use

  • Plastic

Social

  • Human Rights
    (for example, children and slaves)

  • Workers’ rights

  • Labour relation

  • Social Acceptability

       (for example, First Nations)

  • Health

  • Cybersecurity

  • Access and affordability of products and services

  • Consumers’ rights

Governance

  • Board of directors
    (composition, independance, etc..)

  • Executive Compensation

  • Succession planning

  • Shareholder’s rights

  • Lobbying

  • Business Ethics

  • Political contributions

  • Fiscal strategy

  • Accounting process and audit

  • Ownership structure

Sustainable finance wishes to:

 

Find out if these subjects represent issues for organizations targeted by investment and / or funding. If so, then it is a question of how these organizations mitigate these risks;

 

Draw inspiration from these topics to identify opportunities for value creation and innovation.

Chartre graphique Decode ESG-12.png
Chartre graphique Decode ESG-12.png