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Environmental (ESG)

Environmental

The environmental aspect of ESG focuses on improving the environmental performance of a business. It measures a business’ impact on the natural environment and the natural environment’s impact on the business, for instance through physical climate risks. It takes into account factors including a business’ carbon footprint, its impact on biodiversity and its production of waste and pollution.

This aspect includes the following topics:

  • climate change;
  • greenhouse gas emissions (in particular carbon dioxide);
  • emissions to air, water and land;
  • product carbon footprint; pollution and waste (toxic emissions and waste, packaging material and waste and electronic waste);
  • biodiversity;
  • deforestation and land use;
  • treatment of animals;
  • energy efficiency;
  • raw material sourcing;
  • resource depletion (including water);
  • recycling; and
  • environmental opportunities (clean tech, green building and renewable energy).
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