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Introduction to ESG
这是一篇关于ESG目录的思维导图，Corporation Pressure & Stakeholder Expectations。
编辑于2022-08-11 21:40:27 上海- ESG目录
- Introduction to ESG
这是一篇关于Introduction to ESG的思维导图，主要内容有What is ESG?、ESG Factors、Corporation Pressure & Stakeholder Expectations、Key Consideraton for companies & Investors。
- Introduction to ESG
这是一篇关于Introduction to ESG的思维导图。Corporation Pressure & Stakeholder Expectations。
- Introduction to ESG
这是一篇关于ESG目录的思维导图，Corporation Pressure & Stakeholder Expectations。
Introduction to ESG
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- Introduction to ESG
这是一篇关于Introduction to ESG的思维导图，主要内容有What is ESG?、ESG Factors、Corporation Pressure & Stakeholder Expectations、Key Consideraton for companies & Investors。
- Introduction to ESG
这是一篇关于Introduction to ESG的思维导图。Corporation Pressure & Stakeholder Expectations。
- Introduction to ESG
这是一篇关于ESG目录的思维导图，Corporation Pressure & Stakeholder Expectations。
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Introduction to ESG
What is ESG?
1. What is ESG?
2. What's Driving Growth?
3. ESG vs. Socially Responsible Investing (SRI)
4. Why is it important?
ESG Factors
1. Environmental Factors
2. Impact of Environmental Fators in Coporations
3. Social Factors
4. Impact of Social Factors on Corporations
5. Governmance Factors
6. Impact of Governmance Factors on Corporations
Corporation Pressure & Stakeholder Expectations
1. Stakeholders
2. Stakeholders Expectations
3. Modern Demands on the Supply Chain
Key Consideraton for companies & Investors
1. Reporting Transparency and Valuation
2. ESG & CompetitiveAdvantage
3. ESG Trends & Intiatives
4. Intiative Impacts
Introduction to ESG
Chapter One - What is ESG?
Lesson One - What is ESG?
获取编号：#C1L1
Lesson Two - What's Driving Growth?
获取编号：#C1L2
Lesoon Three - ESG vs. Socially Responsible Investing (SRI)
获取编号：#C1L3
Lesson Four - Why is it important?
获取编号：#C1L4
Chapter Two - ESG Factors
Lesson One - Environmental Factors
获取编号：#C2L1
Impact of Environmental Fators in Coporations
Social Factors
Impact of Social Factors on Corporations
Governmance Factors
Impact of Governmance Factors on Corporations
Corporation Pressure & Stakeholder Expectations
1. Stakeholders
2. Stakeholders Expectations
3. Modern Demands on the Supply Chain
Key Consideraton for companies & Investors
1. Reporting Transparency and Valuation
2. ESG & CompetitiveAdvantage
3. ESG Trends & Intiatives
4. Intiative Impacts
What is ESG? #C1L1
ESG
refers to
Environmental
operations environmental impact
environmental stewardship
Social
how a company creates value for stakeholders
Governance
leadership
management philosophy
practices
policies
internal controls
shareholder rights
impact
a company
the company stakeholders
Framework
Envrinmental Systems
Social Systems
Economic Systems
the ability to creat & sustain long-term value in a rapidly changing world
Defined in different ways
the industry
the unique characteristics of the company
the business model
DEI
Refer to
Diversity
Equity
Inclusion
Social Issue
hiring practices
community engagement efforts
procurement strategies
Governance Issue
more informed decisions
supporting the acquisition of new customers & markets
assess how they may impact performance and profitability
History
1980s
EHS
Evironment
Health
Safety
1990
Sustainability
2000-2010s
CSR
Corporate
Social
Responsibility
2020+
ESG
Environmental
Social
Gonvernance
Interchangeably
ESG
Corporate Social Responsibility
Corporate Sustainability
What's Driving Growth? #C1L2
Three Key Factor
Materiality
investor risk and return
Transparency
how client money is invested
case-study
BP-2010
Volkswagen 2015
Cambridge Analytica 2018
Regulation
national & international threats
climate change
human rights violations.
the forces behind ESG becoming a mainstream business concept
ESG vs. Socially Responsible Investing (SRI) #C1L3
types of SRI
Socially Responsible Investing
specific ethical guidelines
gambling
tobacco
weapons
fossil fuel companies
examples
Vanguard FTSE Social Index
SDRP S&P 500 Fossil Fuel Reserve
Impact Investing
key objectives
positive social
environmental outcomes
examples
TISS-CREF Social Choice Bond
Green Bonds
a fixed income instrument
climate change
environmental stewardship
ESG
a measure of greater risk and reward management
examples
iShares MSCI KLD 400 Social ETF
Why is it important? #C1L4
Fundamental Business Issues
Corporate Reputation
enhance a company's license to operate
example
Facebook 2018
tarnished reputation
in managing cyber security attacks
Risk Reduction
immediate and long-term risks
example
a food production company in the western US
dependent on a large local labor force
climate change
a real risk to the company's business continuity
Opportunity Management
unmet needs for new products/services, unserved or underserved customer bases
example
Unilever's ESG efforts in emerging markets
greater profitability
market penetration
localized distribution networks
Culture & Intrinsic Value
purpose-driven workforce
inclusive culture
improve investment outcomes
The collective impacts of ESG on these standard business issues leads to outcomes essential to the long-term viability of the firm and the risk, and reward ratios of a given firm
Introduction to ESG
Chapter One - What is ESG?
Lesson One - What is ESG?
获取编号：#C1L1
Lesson Two - What's Driving Growth?
获取编号：#C1L2
Lesoon Three - ESG vs. Socially Responsible Investing (SRI)
获取编号：#C1L3
Lesson Four - Why is it important?
获取编号：#C1L4
Chapter Two - ESG Factors
Lesson One - Environmental Factors
获取编号：#C2L1
Lesson Two - Impact of Environmental Fators in Coporations
获取编号：#C2L2
Lesson Three - Social Factors
获取编号：#C2L3
Lesson Four - Impact of Social Factors on Corporations
获取编号：#C2L4
Lesson Five - Governmance Factors
获取编号：#C2L5
Lesson Six - Impact of Governmance Factors on Corporations
获取编号：#C2L6
Lesson Seven - Materiality
获取编号：#C2L7
Lesson Eight - ESG Risks & Opportunities
获取编号：#C2L8
Corporation Pressure & Stakeholder Expectations
1. Stakeholders
2. Stakeholders Expectations
3. Modern Demands on the Supply Chain
Key Consideraton for companies & Investors
1. Reporting Transparency and Valuation
2. ESG & CompetitiveAdvantage
3. ESG Trends & Intiatives
4. Intiative Impacts
ESG Factors
Environmental issues
Social issues
Governance issues
Environmental Factors #C2L1
Climate Change
Ultimate Risk Accelerant
Worsens both conventional & ESG-related risks
Natural disasters due to rising temperatures
e.g.
REIT
a portfolio risk
Risk assessments should account
the associated insurance and maintenance costs
Natural Resource Scarcity
Depletion of natural resources
e.g.
multinational food company
the depleting global water supplies
Pollution & Waste
Far Reaching Risks
1. cause reputational risks
2. cause serious repetitional and reputational risk
product R&D
retail expectations
consumer requirements
3. cause health concerns
license to operate
trigger serious legal & regulatory ramifications
e.g.
polluted beaches
reduced appeal of destinations
local tourism, travel and leisure industries
Environmental issues may not impact the company or portfolio directly, but it will most definitely have a material impact on key stakeholders (customers, consumers, or suppliers).
ESG Factors
Environmental issues
Social issues
Governance issues
Impact of Environmental Factors on Corporations #C2L2
Physical Risk
Tangible, quantifiable impacts
company assets
Surrounding infrastructure
key stakeholders
customers
suppliers
supply and demand
e.g.
Coastal Communities
Transition Risk
Market & Non-market shifts
climate and environmental policy
associated technologies
changing consumer preferences
e.g.
multinational invests in a brand-new fleet of diesel trucks
Carbon Taxes
Human Risk
Local force & Social Consequences
Severe weather
Rising temperatures
Natural resource scarcity
e.g.
mass migration
living conditions
Although described separately, the reality is these risks are often interconnected and can exacerbate the impact of one another.
ESG Factors
Environmental issues
Social issues
Governance issues
Social Factors #C2L3
Human Capital Management and Welfare
Shortages of skilled labor
Uneven wage growth
Technology and evolving market trends
less labor-intensive industries, high tech finance and consulting
e.g.
SEC
Human Capital Management as a significant material risk
greater disclosure requirements
Product/Service Safety
corporate reputation
customer retention
reparation costs
regulatory fines
e.g.
SEC
Human Capital Management as a significant material risk
greater disclosure requirements
Human Rights and Labor Management
high-profile human rights abuses
e.g.
Nike was accused in the 1990s
college athletic team boycotts
institutional customer losses
a wide range of consumer product
1、corporate reputation 2、the bottom line
ESG Factors
Environmental issues
Social issues
Governance issues
Impact of Social Factors on Corporations #C2L4
Employees
Recruitment
Engagement
Retention
Greater productivity & performance
Impact
Bottom Lime
engaged employees
21% greater proitability
Losses
disengaged employees
cost $450-550B/year
Customers
Convenience
Price
shifting to
Environmental Sustainability
Social Impact
Customer Experience
ESG maturity can signal to you as an analyst that they are deeply engaged with their customers evolving needs
e.g.
Nike Labor scandal
revenue loss
loss of key advertising opportunities
Unilever
supporting the welfare of local shopkeepers
selling Unilever products
Communities
Welfare
Materials
House assets
Production sites
Labor
enhance the company's license to operate
the financial and in-kind contributions to community cause and the extent of their engagement on Community issues can provide insight into how corporations will manage the ESG issues
ESG Factors
Environmental issues
Social issues
Governance issues
Governance Factor #C2L5
Board Quality, Diversity and Effectiveness
Qualifications
Accountability Measures
Approach to counselling management
Integration of ESG factors into business planning
DEI as a critical benchmark and are looking for more comprehensive execution of DEI strategies
Reporting, Transparency, Business Ethics
ESG Repoting Standards
Comprehensiveness
Accuracy
Consistency
1、Investor Confidence & Valuations 2、Consumer & Stakeholder trust
Leading & most credible disclosure frameworks
Accounting Standards Board (SASB)
Task Force for Carbon-related Financial Disclosures (TCFD)
Global Reporting Initiative (GRI)
Executive Compensation, Long termism, and ESG Integration
Executive Compensation
environmental / social benchmarks
Board level
enterprise risk management system and long-term planning
ESG integration
part of its enterprise approach to governance
fully assessing their risk exposure
ESG Factors
Environmental issues
Social issues
Governance issues
Impact of Governance Factors on Corporations #C2L6
Stakeholder Trust & Licensed to Operate
Consumer trust in corporations and institutions in general are at historic lows:
B2B customers are now accountable for the behaviors of their supply chain partners.
Employees no longer spend an entire career at a single company
Enhanced governance directly Impacts the trust necessary for stakeholder confidence & licensed to operate
E.g. Nike controversy
lack of accountability and due diligence
Enhanced Risk Management
ESG integration provides greater sensitivity to changing market and non-market conditions
1. Stakeholder Opposition
2. Boycotts
3. Government Fines & Litigation
Long-term Value Creation
Enterprise Risk Management
Corporate Strategy
E.g. Unilever
ESG Factors
Environmental issues
Social issues
Governance issues
ESG Risks & Opportunities
Materiality
Materiality #C2L7
Materiality
most important to the long-term success of the business.
Materiality Analysis
most impactful to a company's business success
most important to its stakeholders
which ESG issues
The stakeholder aspect provides you with an idea as to where opposition may lie and the extent of material risk associated with these opposing stakeholder interests.
Two Axes
Importance to Stakeholders
Importantce to Business
leverage the analysis as a tool for measuring the efficacy and maturity of the company's work on ESG in general
Importance of ESG impacts
Low
Deforestation
Corporate Philanthropy
Medium
Water & Natural Resource Scarcity
Transparency, Disclosure
Labor Mangement
DEI
High
Emissions & Energy Management
Social & Environmental Impact on Communities
Climate Change
ESG Factors
Environmental issues
Social issues
Governance issues
ESG Risks & Opportunities
Materiality
ESG Risks & Opportunities #C2L8
create Novel Risks
Supply Chains
Interdependent Industries
Entire Communities
Reverberate Across
the determining factor
the quality of governance
as both risks and opportunities
Comprehension & Identification of material ESG issues
New customer bases/markets
Product innovartion
New business models
adapted to these changes in market and non-market factors
Example
Food Service Company
Risks
Raw material costs rise
water scarcity
rising temperatures
refrigeration increasing
Opportunities
consumer preferences for plant-based proteins
integrating plant-based proteins into their key offerings
reduces the amount of water required
reduces the amount of power
refrigeration
store the products
Introduction to ESG
Chapter One - What is ESG?
Lesson One - What is ESG?
获取编号：#C1L1
Lesson Two - What's Driving Growth?
获取编号：#C1L2
Lesoon Three - ESG vs. Socially Responsible Investing (SRI)
获取编号：#C1L3
Lesson Four - Why is it important?
获取编号：#C1L4
Chapter Two - ESG Factors
Lesson One - Environmental Factors
获取编号：#C2L1
Lesson Two - Impact of Environmental Fators in Coporations
获取编号：#C2L2
Lesson Three - Social Factors
获取编号：#C2L3
Lesson Four - Impact of Social Factors on Corporations
获取编号：#C2L4
Lesson Five - Governmance Factors
获取编号：#C2L5
Lesson Six - Impact of Governmance Factors on Corporations
获取编号：#C2L6
Lesson Seven - Materiality
获取编号：#C2L7
Lesson Eight - ESG Risks & Opportunities
获取编号：#C2L8
Corporation Pressure & Stakeholder Expectations
Lesson One - Stakeholders
获取编号：#C3L1
Stakeholders Expectations
Modern Demands on the Supply Chain
Key Consideraton for companies & Investors
1. Reporting Transparency and Valuation
2. ESG & CompetitiveAdvantage
3. ESG Trends & Intiatives
4. Intiative Impacts
Corporation Pressure & Stakeholder Expectations
Stakeholders
Stakeholders Expectation
Modern Demands on the Supply Chain
Stakeholders #C3L1
Capital Allocation
Stakeholders
any individual or entity
affected by or can affect the business.
Stakeholder Capitalism
Creating value for all stakeholders
Company
Internal Shareholders
owners
employees
Internal Shareholders
customers
supply chain partners
investors
local communities
government
NGOs
civil society
ESG makes good business sense
Stakeholder Welfare
Corporate Profitability