SG stands for Environmental, Social, and Governance. These are three key areas that should be considered when evaluating the sustainability and ethical impact of investment.
Environmental factors include a company’s impact on the natural environment, such as its carbon emissions, waste management practices, and resource conservation efforts. Social factors encompass a company’s relationships with its employees, customers, suppliers, and communities, including issues related to labor standards, human rights, and community development. Governance factors relate to a company’s leadership, transparency, and accountability, including the composition and effectiveness of its board of directors, its executive compensation practices, and its policies related to risk management, compliance, and ethics.
ESG considerations have become increasingly important for investors seeking to align their investments with their values and mitigate risk, and they are also a key factor in determining a company’s long-term performance.
SDG stands for Sustainable Development Goals. The SDGs are a set of 17 goals adopted by the United Nations in 2015 to end poverty, protect the planet, and ensure peace and prosperity for all people by 2030. The SDGs cover a wide range of interconnected issues, such as ending hunger and promoting food security, improving access to healthcare and education, reducing inequality, ensuring access to clean water and sanitation, promoting sustainable economic growth, combating climate change, and protecting biodiversity. The SDGs provide a roadmap for countries, businesses, and individuals to work towards a more sustainable and equitable world.
GRI stands for Global Reporting Initiative, which is an international independent standards organization that helps businesses and organizations understand and communicate their impact on sustainable development issues.
The GRI provides a framework for companies to measure and report on their environmental, social, and governance (ESG) performance, which can help them improve their sustainability practices, engage stakeholders, and make more informed decisions.
The GRI standards are widely used by companies, governments, and other organizations around the world to assess and report on their sustainability performance, and they cover a wide range of topics such as greenhouse gas emissions, human rights, labor practices, and supply chain management. By using the GRI standards, organizations can demonstrate their commitment to transparency, accountability, and sustainable development, which can enhance their reputation and help them attract investors and customers who value ESG performance.
Climate change is a major ESG issue, and investors are increasingly factoring it into their investment decisions. Companies that are highly exposed to climate change risks, such as those in the energy sector or those with extensive supply chains, may face challenges.
Social factors such as human rights, labor standards, and community engagement are increasingly important for investors. Companies that have strong social policies and practices can have a competitive advantage in attracting customers and employees.
Includes initiatives and practices aimed at promoting responsible sourcing, ensuring supply chain transparency, and monitoring and addressing supplier risks and impacts.
Companies should maintain positive relations with the communities in which they operate and engage in meaningful dialogue with stakeholders.