Difference between revisions of "List of ESG Factors"

From Open Risk Manual
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== Social Factors ==
 
== Social Factors ==
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Social factors can be defined as social matters that may have a positive or negative impact on the financial performance or solvency of an entity, sovereign or individual. Social factors are related to the rights, well-being and interests of people and communities, and include factors such as:
 
  
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* [[Inequality]]
 
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* Inclusiveness
 
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* Labour Relations
 
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* Employee Relations
 
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* Working Conditions
 
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* Health and Safety
 
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* Modern Slavery
 
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* Child Labour
 
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* investment in human capital and communities
 
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* Human Rights
 
  
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{|  class="wikitable"
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These factors are increasingly being considered in the business strategies and operating frameworks of institutions and their counterparties.
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! Factor
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! Measurement
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=== Community and Society ===
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! Remarks
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* Relations with local communities (networks)
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* Social impact of products and services
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! colspan="3" | Community and Society
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|-
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=== Employee Relationships and Labour Standards ===
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| Relations with local communities (networks)
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* Freedom of association and right to organise
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* Forced labour
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* Minimum age and child labour
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* Equal representation
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| Social impact of products and services
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* Equal remuneration
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* Discrimination
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* Human capital management and employee relations (training and development opportunities)
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* Workplace health and safety
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! colspan="3" | Employee Relationships and Labour Standards
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|-
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=== Customer Relationships ===
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| Freedom of association and right to organise
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* Customer protection and product responsibility
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* Personal data security and privacy
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* Rights of customers to obtain information about ESG factors
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* Quality and innovation in customer relations
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| Forced labour
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=== Human Rights ===
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* Contribution to human rights projects
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| Minimum age and child labour
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=== Povery and Famine ===
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* Contribution to poverty reduction
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| Equal representation
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| Equal remuneration
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| Discrimination
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| Human capital management and employee relations (training and development opportunities)
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| Workplace health and safety
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|-
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! colspan="3" | Customer Relationships
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|-
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| Customer protection and product responsibility
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|-
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| Personal data security and privacy
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|-
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| Rights of customers to obtain information about ESG factors
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|-
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| Quality and innovation in customer relations
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|-
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! colspan="3" | Human Rights  
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|-
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| Contribution to human rights projects
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|-
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! colspan="3" | Povery and Famine
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| Contribution to poverty reduction
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|}
  
 
== Governance Factors ==
 
== Governance Factors ==

Revision as of 17:06, 13 August 2021

List of ESG Factors

This is a list of ESG Factors as currently considered to capture most material Environmental Social and Corporate Governance criteria[1]. The list is structured in ESG groups / sub-groups / individual factors. For each factor there is an indication as to how it can be assessed / measured.

Environmental Factors

Factor Measurement Remarks
Emissions
Greenhouse Gas Emissions, Total GHG emissions (broken down by scope 1, 2 and 3 carbon emissions)
Emissions of air pollutants
Emissions of water pollutants
Emissions of inorganic pollutants
Carbon footprint
Fossil fuel sectors
Reduction policies or initiatives on the use and production of fossil fuels
Compliance with Paris Agreement targets
Reduction policies or initiatives on emissions
Energy Efficiency
Energy consumption intensity
Use of renewable sources of energy
Water Usage
Water consumption intensity
Waste Production
Production of hazardous waste
Reusability/Recyclability
Biodiversity and Ecosystems
Presence/operations (e.g. own, via value chain) in geographic areas impacted by soil degradation
Presence/operations (e.g. own, via value chain) in geographic areas and industries that are particularly dependent on biodiversity and ecosystem services
Presence/operations (e.g. own, via value chain) in protected areas or areas of high biodiversity value outside protected areas
Operations (e.g. own, via value chain) affecting IUCN Red List species and/or national conservation list species
Environmental Hazards
Presence/operations (e.g. own, via value chain) in areas likely to be affected by heatwaves
Presence/operations (e.g. own, via value chain) in areas likely to be affected by water scarcity
Presence/operations (e.g. own, via value chain) in areas likely to be affected by floods
Presence/operations (e.g. own, via value chain) in areas likely to be affected by coastal erosion
Presence/operations (e.g. own, via value chain) in areas likely to be affected by wildfires


Social Factors

Factor Measurement Remarks
Community and Society
Relations with local communities (networks)
Social impact of products and services
Employee Relationships and Labour Standards
Freedom of association and right to organise
Forced labour
Minimum age and child labour Equal representation
Equal remuneration Discrimination
Human capital management and employee relations (training and development opportunities)
Workplace health and safety
Customer Relationships
Customer protection and product responsibility
Personal data security and privacy
Rights of customers to obtain information about ESG factors
Quality and innovation in customer relations
Human Rights
Contribution to human rights projects
Povery and Famine
Contribution to poverty reduction

Governance Factors

Governance factors can be defined as governance matters that may have a positive or negative impact on the financial performance or solvency of an entity, sovereign or individual.

Governance factors cover elements such as:

  • management structures / executive leadership
  • executive remuneration
  • board diversity and structure / independence
  • audits and internal controls
  • shareholder rights
  • bribery and corruption
  • political lobbying and donations
  • tax strategy / tax avoidance
  • inclusion of environmental and social factors in policies and procedures


Conciderations around the governance of public and private institutions with relevance to ESG factors (have an impact on or are impacted by institutions’ counterparties or invested assets, including governance arrangements for the environmental and social factors in counterparty policies and procedures) include:

Ethical Considerations

  • Integrity of conduct/conduct frameworks
  • Values and ethics
  • Bribery and corruption
  • Accountability/rule of law

Strategy and Risk Management

  • Strategy implementation, operational execution and monitoring
  • Internal controls and risk management policies and procedures

Inclusiveness

  • Discrimination

Transparency

  • Observance of disclosures, information rules and practices

See Also

References

  1. ↑ EBA Report: On Management and Supervision of ESG Risks for Credit Instituions and Investment Firms, EBA/REP/2021/18
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