ESG Assessment

Environmental, Social, and Governance

ESG stands for Environmental, Social, and Governance.

The ESG acronym has recently become synonymous with corporate initiatives demonstrating commitments and adherence to criteria and standards, metrics, and practices in three overarching pillars: Environmental, Social, and business Governance

The ESG approach is based on the threefold dimension of the economic activity of a company that supports respect for the rights of workers, the community and the protection of the environment.

This approach is the evolution of the Triple Bottom Line concept, introduced already in the late 90s with application also to international building sustainability certification standards (LEED, Breeam, DGNB) and also known as PPP, an acronym for People, Planet, Profit.

The three parameters:

  • Environmental aspect, therefore the impact on the environment and on the territory in which the company operates or on which the company exercises its influence;
  • Social aspect, which includes all the initiatives that have a social impact not only towards the territory and towards the outside, but also towards the inside of the company itself;
  • Governance aspect concerns the management of the company organization, the qualifications of managers, members of the board, the Board of Directors up to the managing directors.

Investors are increasingly applying these non-financial factors as part of their analysis process to identify material risks and growth opportunities.

It therefore becomes imperative to guarantee your customers that what is offered, both a product or a service, is truly sustainable, i.e. met a certain number of measurable environmental, social and governance sustainability criteria.

ENVIROMENTAL
ENVIROMENTAL
  • Renewable fuels
  • Greenhouse gas (GHG) emissions
  • Energy efficiency
  • Climate risk
  • Water management
  • Recycling processes
  • Emergency preparedness
SOCIAL
SOCIAL
  • Health and safety
  • Woking conditions
  • Employee benefits
  • Diversity and inclusion
  • Human rights
  • Impact on local communities
GOVERNANCE
GOVERNANCE
  • Ethical standards
  • Board diversity and governance
  • Steakholder engagment
  • Shareholder rights
  • Pay for performance

Environmental criteria consider how a company protects the environment and mitigates climate change.

Criteria may include energy use, direct and indirect GHG emissions, pollution, waste management, conservation of natural resources, treatment of animals, compliance with environmental regulations and the impact on water. .

Attention to environmental criteria is not limited to the company alone, but can also include examining the company supply chain.

 

Social criteria examine how a company manages relationships with direct and indirect stakeholders, including employees, suppliers, customers, and the communities in which it operates.

This can include a range of social indicators such as: inclusiveness and diversity, remuneration, career opportunities, respect for the health and safety of employees, compatibility between work and private life,

In addition to employment, the social criteria also examine corporate ethics and the impact the company has on the community in which it is based

Governance criteria ensure a company pursues integrity and diversification in selecting its leadership and is accountable to its shareholders.

They promote policies and procedures that guarantee accurate and transparent accounting methods, the absence of conflicts of interest, and illegal behavior.

Thanks to our almost twenty years of experience in the field of sustainability applied to real estate investments, we can support you in the ESG assessment of your company and your activities, suggesting the most effective strategies to maximize.

Contact us to request a workshop to understand all the opportunities and benefits of adopting sustainable ESG strategies

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