Environmental, social and corporate governance


In todays podcast we look at the idea of Environmental, social and corporate governance Scoring or ESG score. it grew out of a investment practice called Socially Responsible Investing (SRI). ESG investing and analysis, on the other hand, looks at finding value in companies—not just at supporting a set of values. Why is this important, the reason is that Aviva Investors, has put the directors of 1,500 companies on notice and that it is willing to seek their removal (from their investing group) if they fail to show enough urgency in tackling issues including the climate crisis and human rights! But how does a company show what its doing to Investors, by generating a Environmental, social and corporate governance score! Additionally with Investors wanting Green companies to invest in, they need to know how green a company is. At COP21, The Paris Agreement Capital Transition Assessment (PACTA)was created to be a free, open-source methodology and tool, which measures financial portfolios' alignment with various climate scenarios consistent with the Paris Agreement, which is developed into Environmental, social and corporate governance Score. If a company want to improve there Environmental, social and corporate governance Score they might want to introduce Science-based targets. these provide a clearly-defined pathway for companies to reduce greenhouse gas emissions, helping prevent impacts of climate change and future-proof business growth. Targets are considered ‘science-based’ if they are in line with what the latest climate science deems necessary to meet the goals of the Paris Agreement – limiting global warming to well-below 2°C above pre-industrial levels and pursuing efforts to limit warming to 1.5°C.



Tags: Environmental social and corporate #governanceenvironmental #environmentalsocialgovernance #esg #esginvestingfinance #metricsinvestors #climatechange #science #investing #investment #podcast #environmental #business

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