ESG: what you need to know


Shareholder activism shows the most promise for making
the biggest impact on environmental, social and governance
issues.

Shareholder activism shows the most promise for making the biggest impact on environmental, social and governance issues.

It involves direct engagement with the companies in an investment portfolio whose reporting, environmental management, social track record or corporate governance give cause for concern.

Here are a few of the ESG factors considered in SRI:
• E for Environmental
• S for Social
• G for Governance

Environmental

• Biodiversity

o Forestry

• Climate change

o Greenhouse gas (GHG) emissions

o Carbon footprint

o Green buildings

• Water management

o Water-related risks

o Water footprint

o Fracking

• Product safety

o Genetically modified organisms (GMOs)

o Nanotechnology

• Recycling

• Transparency

Social

• Workers' rights

o Code of conduct

• Human rights

o Burma

o Darfur

• First Nations

• Supply chains

o Electronics

o Clothing

• Child labour

• Healthcare

• Sex tourism

• Violence and militarization

• Healthcare in developing countries

• Extraction of natural resources

o Democratic Republic of the Congo

Governance

• Board of directors

o Composition

o Independence

o Shareholder nominations

• Executive compensation

o Advisory vote

o Financial crisis

o Severance pay

• Shareholder rights

o Multiple-voting shares

• Political contributions

• Shareholder rights plan

• Succession plan

• Abstention campaign

• Security lending

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