Neufin’s Post

Have you heard about ESG Scores? Let me explain. ESG scoring is a rating system to evaluate a company’s performance on 3 factors: 1. Environmental Factor 2. Social Factor 3. Governance Factor It provides a snapshot of a company’s commitment to sustainability and ethical practices. No more greenwashing – This is all about real impact. The catch? Different rating agencies have different methods of calculating these scores. A company could be a leader with one agency and be in a lower position in the other one. Some agencies involved in ESG ratings are: MSCI Inc. Morningstar Sustainalytics It’s easier now to do your research and pick your ESG warrior. ESG scoring helps your investment give a conscience. #ESG #SustainabilityLeaders #ESGInvesting #CorporateResponsibility

📍The only post you will ever need to understand ESG Framework In today's rapidly changing world, the ability to create and sustain long-term value lies in effectively managing the risks and opportunities associated with these changes. ESG is a comprehensive framework used to assess how companies handle these aspects. Environment: Examines a company's impact on the environment and its stewardship in operations, products, and business activities. Social: Evaluates how a company manages relationships with stakeholders and creates value for them, including community engagement, human rights, and human capital management. Governance: Focuses on a company's leadership, management philosophy, practices, policies, internal controls, and stakeholders' rights. Key Factors in ESG's Growth: Materiality: How ESG influences investors' risk and regulations. Transparency: Clarity on how client money is invested. Regulation: Addressing both national and international threats. Types of Sustainable Investing: Socially Responsible Investing Impact Investing Green Bonds ESG Integration Top Companies Following ESG: - Accenture - Adobe - European Investment Bank - JLL - Asian Development Bank (ADB) ESG is not just a trend but a vital approach for future-proofing businesses. By focusing on these factors, companies can navigate uncertainties and thrive sustainably. --- Feel free to reshare and repost if you find this insightful! Found this helpful? Follow me for more Jeetain Kumar, MBA, FMVA®, ESG #esg #sustainability #investing #finance #risk #management #business #ethics #governance #environmental #impact #cfa #valuation #reporting

Sustainability reporting standards and frameworks 🌎 Investor interest in companies engaged in sustainability is escalating, driven by the need to understand corporate approaches to issues like climate change, gender diversity, and supply chain risks. These concerns are shaping investment decisions, emphasizing the importance of detailed environmental, social, and governance (ESG) data. Stock exchanges and regulatory bodies worldwide are actively developing sustainability and climate disclosure regulations. Currently, 71 stock exchanges, more than half globally, offer guidance on ESG disclosure, a significant increase from only 13 in 2015. Furthermore, 27 markets now enforce mandatory ESG reporting rules, with 16 of these being in emerging markets. The push for harmonization in sustainability disclosure standards is gaining momentum. This effort aims to create reliable and comparable ESG data across different regulatory environments, which is crucial for attracting capital and preventing greenwashing. Harmonized standards ensure that ESG disclosures are both meaningful and verifiable, facilitating better investment decisions. This global trend towards standardized reporting reflects a growing consensus on the need for transparency in how companies manage sustainability challenges. The table below provides a detailed comparison of major sustainability frameworks and standards. It outlines their application, coverage, and approach to materiality, serving as a critical resource for understanding the nuances of ESG reporting. This comparison is instrumental for stakeholders aiming to navigate the complex landscape of global sustainability standards. Source: IFC Beyond the Balance Sheet #sustainability #sustainable #business #esg #climatechange #climateaction #strategy #reporting #materiality

Probably add TPT in last column

sustainability reporting and standards, a good write up to read .

ESG ratings: getting it right matters 🌎 In the world of Environmental, Social, and Governance (ESG), accurate ratings are crucial. But why? 🤔 Swipe through to learn how accurate ESG ratings can: 1️⃣ Inform investment decisions, helping you make a positive impact with your portfolio 💰 2️⃣ Enhance credibility and trust, demonstrating your commitment to sustainability and ethical practices 📈 3️⃣ Drive real sustainability progress, encouraging companies to improve their ESG performance and make a difference 🌱 4️⃣ Reduce risk and improve performance, as accurate ESG ratings can help identify potential pitfalls and opportunities for growth 📊 5️⃣ Support a more sustainable future for all, contributing to a global movement towards responsible and conscious business practices 🌟 Inaccurate or incomplete ESG ratings can have serious consequences, from misguided investments to greenwashing. Don't settle for anything less than transparent and precise ESG ratings. Demand excellence and join the movement towards a more sustainable tomorrow! #ESGratings #sustainability #transparency #accuracymatters

The landscape of ESG (Environmental, Social, and Governance) investing is rapidly evolving, underscoring the vital role of sustainable business practices in today's corporate world. Industry leaders must navigate this terrain with informed decisions, leveraging comprehensive ESG criteria to drive meaningful change. Understanding ESG: It's crucial to grasp the full spectrum of ESG, from environmental impact and social responsibility to governance practices, as these factors significantly influence investment decisions and corporate reputations. Measurement Challenges: Accurately assessing ESG criteria remains a complex task. The variability in reporting standards and frameworks necessitates a discerning approach to ensure reliability and comparability of ESG metrics. Choosing the Right Framework: With multiple ESG reporting frameworks available, selecting one that aligns with our industry's specific needs is imperative for effective disclosure and transparency. The Power of ESG Ratings: Understanding the methodology behind ESG ratings is key to interpreting their impact on investment strategies and corporate evaluations. As we delve deeper into the ESG investing paradigm, there needs to be a commitment to fostering sustainable growth and resilience, ensuring businesses not only thrive but also contribute positively to our planet and society. #ESGInvesting #SustainableBusiness #CorporateResponsibility #InvestmentStrategy

*ESG In the New World, institutional successes are not influenced by economic forces alone. They exist at the intersection of Environmental, Social, and Governance-related (ESG) concerns. Consequently, a consensus is materializing across the board that a resolute stand on sustainability can beget many benefits. This includes better valuation, improved financial performance, smooth access to capital, and of course, mitigated risk of operations even in disruptive landscapes. Business sustainability has become the focus of stakeholder interests worldwide and ESG Ratings provide an objective benchmark. They interpret the organizations’ ESG policy impact in numerical terms, simplifying correlation and comparison of the outcomes across sectors. With over $30 trillion in sustainable capital placed across global investment conduits, ESG ratings have evolved as a critical router determining their volume and flow. #esg #esgreporting #esggoals #esginvesting #esgjourney #sustainability #esgranking #msmesector

As businesses globally embrace sustainability, one term stands out - ESG (Environmental, Social, Governance).⚖️ From a mere buzzword a decade back to a key business strategy today, the evolution of ESG is remarkable!📈 The timeline speaks for itself: 1⃣ Beginnings in Corporate Responsibility - Businesses realized their impact extended beyond shareholders to broader society and our planet. Thus emerged the era of corporate responsibility.🌱 2⃣ Formalizing Sustainability Reporting - Standards like #GRI & #SASB emerged, helping businesses quantify & communicate their sustainability efforts, paving the way for data-backed ESG reporting. 3⃣ Investor Interest - Recognizing that responsible companies perform well in the long-term, investors started integrating ESG factors into their investment decisions.💰💼 4⃣ Regulatory Push - Governments worldwide started mandating sustainability disclosures, reinforcing the seriousness of ESG.⚖️ 5⃣ Beyond Reporting - ESG Action - Measuring ESG is no longer enough. Businesses are taking steps to actively improve their ESG performance.🚀 As #ESG continues to evolve, what does the future hold? More importantly, is your business ready for this shift? Let's drive this discussion forward! Source: Dun & Bradstreet #ESGInvesting #CorporateSustainability #ESGReporting #SustainableBusiness #FutureOfESG

Debunking ESG Myths: What Every Business Leader Needs to Know As ESG continues to reshape the business landscape, misconceptions abound. Let's clear the air on some persistent myths: "ESG is just greenwashing" Reality: While greenwashing exists, authentic ESG integration drives tangible value. Example: Unilever's Sustainable Living Plan led to €1 billion in cost savings and new market opportunities. "ESG is only for large corporations" Truth: SMEs can benefit immensely. A study by HSBC found that 35% of SMEs implementing ESG practices saw increased profitability. "ESG performance doesn't impact financial returns" Fact: Companies with high ESG ratings outperformed the market by 2.6% annually from 2010-2020 (MSCI). "ESG is too complex to measure" Reality: While challenges exist, frameworks like SASB and GRI provide standardized metrics. The upcoming ISSB standards will further harmonize reporting. "ESG is a passing trend" Truth: With $35 trillion in ESG assets under management globally, it's here to stay and evolving rapidly. What other ESG myths have you encountered? How is your organization navigating the ESG landscape? #ESG #BusinessStrategy #SustainableLeadership #CorporateResponsibility