Navigating
the
Landscape
of ESG
Introduction to ESG
What is ESG ?
-
The term ESG stands for Environmental, Social and Governance.
It is a key framework for assessing and managing sustainability, social responsibility and good
governance in the business world (UNDP).
It is a set of practices and metrics used to evaluate a company beyond its financial
performance (BCA).
A framework that helps stakeholders understand how an organization is managing risks and
opportunity related to environmental, social and governance criteria (sometimes called ESG
factors). ESG takes the holistic view that sustainability extends beyond just environmental issues
(CFI).
The definition of ESG issues is not uniform, as it can differentiates based on industry, company size, and
operational structure.
In simpler terms, ESG stands for Environmental, Social, and Governance, and it's about evaluating how
well a company handles things like its impact on the environment, its relationships with people and
communities, and how it's managed. We can say that, ESG is all about understanding how a
company operates responsibly and sustainably.
Why ESG matters?
1 Enhance brand trust and corporate
image through robust ESG
practices.
Coca-Cola's early 2000s water usage
issues led to a reputation hit. They
bounced back with sustainability
efforts, proving ESG practices boost
corporate reputation.
3 ESG factors create opportunities for
innovation, and competitive edge
Mahindra Electric's focus on electric
mobility shows how ESG can drive
innovation and market distinction,
establishing it as a key player in India's
EV sector and creating long-term
value for stakeholders.
2
ESG integration helps identify and
mitigate ESG risks.
Unilever faced water scarcity risks
from agriculture. By integrating ESG
practices to reduce water use, they
ensured sustainability, protected
operations, and enhanced their
reputation.
4
ESG initiatives foster a culture of
sustainability, and DEI
Infosys's "Sustainability 2025" initiative,
focused on reducing carbon footprint
and promoting inclusion, boosted
employee engagement and
enhanced its reputation.
5
ESG drive value
creation by
fostering
resilience,and
sustainable growth.
Microsoft's ESG
commitment, with
renewable energy
adoption and
carbon offsetting,
creates value by
reducing
environmental
impact, improving
reputation, and
attracting
sustainable investors.
History of ESG
Source: https://thesustainableagency.com/blog/the-history-of-esg/
ESG Reporting
ESG reporting is the disclosure of information about business operations and the business's environmental, social, and
governance (ESG) areas.
Key Principles
Strategic focus and materiality of ESG and their metrics that are consistent with the organisation’s strategy, objective(s)
and values.
Comparability of reported metrics across similar organization types and sectors (e.g. using benchmarking methods and
establishing baselines, using risk and opportunity metrics, or collecting evidence from comparable analysis)
ESG narrative based on the concept of materiality that identifies the important and relevant impacts for the organization
and its internal and external interested parties.
Transparency of reporting that identifies ESG risks and opportunities to key governance bodies and interested parties.
Reporting Principles
•

•

•

•

•

Accurate
The information about the report should be verified, true and validated and it should be reviewed by the
organisations.
Timely
Organizations should report information on a regular schedule and make it available to relevant interested parties.
Fair and unbiased
Organizations should report information in a balanced and unbiased way and provide a fair representation of the
organization’s adverse and positive ESG impacts, risks and opportunities.
Comparable
The organization should select, compile and report information consistently and comparably to enable an analysis of
changes in the organization’s impacts over time.
Transparent and clear
The organization should present information in a way that is accessible and understandable.
ESG Reporting Frameworks
•

•

•

•

Global Reporting Initiative (GRI)
Global Reporting Initiative is an independent, international body that assists corporations, government and public agencies, and
other organisations in tracking, managing, developing, and publishing sustainability metrics and data.
Task Force on Climate-Related Financial Disclosures (TCFD)
The task force was charged with developing recommendations for improved and increased disclosures of climate-related
financial risks.
Sustainability Accounting Standards Board (SASB)
SASB also offers a Materiality Finder, a web-based tool designed to help companies understand what ESG-related issues are
relevant to their sector.
Carbon Disclosure Project (CDP)
Entities using the CDP framework can report carbon mission-related data through three questionnaires covering change, water
security, and forests.