WORLDWIDE FOCUS ON CLIMATE CHANGE, continuing disruptions from the pandemic, social movements and demands for equity have forced companies from every corner of the globe to act on their environment, social and governance (ESG) initiatives.
The ESG acronym refers to the non-financial plans made by companies to measure their ecological footprint, equity and social impact. It covers the following metrics:
• Environmental indicators such as greenhouse gas emissions, waste generation, water security and climate change risk strategy.
• Social indicators such as employee and supplier diversity, data protection and privacy, community socio-economic outcomes, pay equity, worker health, safety, and human rights.
• Governance indicators such as board independence and accountability; board oversight of executive performance and compensation; and board oversight of company strategy, risk management, performance and disclosure.
Over the past two decades, issues related to ESG have impacted corporations’ profitability and long-term financial viability, as evidenced by the increase in severe weather events, dangerous infrastructures, and troubled world economies. In addition, the 2008 financial subprime crisis shed light on the relevance of investor decisions and the centrality of their role, the progression in public awareness as it relates to social
