
This course bundle have 5 sub courses plus IIEEL Certification which covers
Environmental, Social, and Governance (ESG) has gained increasing attention over the past few years, with many institutional investors investing only in those companies that provide ESG performance reporting. In fact, ESG has considerations relevant to analysts and investors, consumers and employees, and has become a key topic of discussion at the Board table. This course provides an overview of an ESG framework and how it supports a company’s overall risk management. It examines each component in detail and provides insight into how they converge to impact a company and its stakeholders. The course also discusses how to look at corporate pressures & stakeholder expectations and their impact on risk identification and business success.
Overview of E, S, and G
1. Environmental
Environmental factors refer to an organization’s environmental impact(s) and risk management practices. These include direct and indirect greenhouse gas emissions, management’s stewardship over natural resources, and the firm’s overall resiliency against physical climate risks (like climate change, flooding, and fires).
2. Social
The social pillar refers to an organization’s relationships with stakeholders. Examples of factors that a firm may be measured against include Human Capital Management (HCM) metrics (like fair wages and employee engagement) but also an organization’s impact on the communities in which it operates.
A hallmark of ESG is how social impact expectations have extended outside the walls of the company and to supply chain partners, particularly those in developing economies where environmental and labor standards may be less robust.
3. Governance
Corporate governance refers to how an organization is led and managed. ESG analysts will seek to understand better how leadership’s incentives are aligned with stakeholder expectations, how shareholder rights are viewed and honoured, and what types of internal controls exist to promote transparency and accountability on the part of leadership.