ESG INVESTMENT _20240429_072550_0000.pdf

asthadcffiles 41 views 15 slides May 04, 2024
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About This Presentation

Volunteerism


Slide Content

ESG
Investment
~Profit with Purpose

ESG investing stands for Environmental, Social,
and Governance investing. It's a strategy that considers
a company's performance on these critical factors
alongside its financial performance.
Introduction

Investors look at how a company performs
in three key areas:
Environment: This considers a company's impact on climate
change, pollution, and resource use.
Social: This examines how a company treats its employees,
customers, and the communities it operates in.
Governance: This focuses on how the company is run, including
its leadership, transparency, and accountability.

How
Companies
Work for the
Environment
with ESG
Investing

ESG Investing brings environmental factors into the equation,
encouraging companies to adopt practices that benefit the
planet.
This could involve using
recycled materials,
optimizing energy
consumption through
renewable sources, or
implementing water
conservation practices.
Resource Efficiency Pollution Reduction
ESG-conscious companies
invest in cleaner
technologies and processes
to minimize air, water,
and land pollution. This
might involve upgrading
equipment to reduce
emissions, implementing
stricter waste management
strategies, or adopting
closed-loop recycling
systems.
This could involve setting goals
for reducing greenhouse
gas emissions, investing in
carbon capture
technologies, or
transitioning to renewable
energy sources.
Climate Change Action

The Water POLLUTION Prevention Act
The Water (Prevention and Control of Pollution) Act, 1974 (Water Act):
This law regulates the discharge of any pollutants into water bodies.
The AIR pollution Prevention Act
The Air (Prevention and Control of Pollution) Act, 1981 (Air Act): This law controls
air emissions from industries.
The ENVIRONMENT Protection Act
The Environment (Protection) Act, 1986 (EP Act): This is an umbrella act that covers a
broad range of environmental issues, including waste management, hazardous
substances, and environmental impact assessments.

HOW COMPANIES WORK
FOR THE BETTER WORKING
ENVIRONMENT

Setting Clear Goals and Targets 1.
Companies committed to ESG consider sustainability goals alongside financial targets.
2. Training and Education
Educating employees about ESG principles fosters awareness and commitment.
3. Employee Experience
Purposeful Employees Experience involves aligning employees’ work with the company’s
mission and values.
4. Maintaining the Social License
It ensures alignment with societal expectations
and prevents reputational risks

HOW GOVERNANCE IN
INDUSTRIES HELPS:-

TYPES OF GOVERNANCE :
Self-Regulation: Industries can establish their own codes of conduct and best practices,
often enforced through industry associations.
Government Regulation: Laws, regulations, and permit systems set by governments
establish minimum standards and compliance requirements.
Multi-Stakeholder Governance: This involves collaboration between governments,
industries, NGOs, and communities to develop and implement sustainable practices.

CHALLENGES OF
INDUSTRY GOVERNANCE:
Balancing Interests: Finding the right balance between economic growth,
environmental protection, and social well-being can be complex.
Enforcement: Ensuring effective enforcement of regulations and standards
across a diverse range of industries can be challenging.
Globalized Production Chains: With complex global supply chains, ensuring
ethical and sustainable practices throughout the chain can be difficult.

Benefits and
Impact
~of ESG Oriented Companies

Linked to Top-Line Growth1.
ESG policies encourage companies to adopt sustainable
practices, which can lead to growth opportunities.
2. Provides Better Returns
Sustainable investments offer lower downside risk compared to traditional
investments.
3. Makes You Feel Good About Your
Investment Decisions
Knowing that your investments contribute to positive change

Drawbacks of ESG
Investment
Limited investment options1.
Focusing on ESG can restrict the pool
of investable companies.
2. Potential for greenwashing
Some companies may exaggerate their ESG practices
to attract investors.
3. Potentially higher costs
ESG funds might involve more research and analysis,
leading to higher fees compared to traditional funds.

Conclusion
ESG investing isn't just about financial gain, it's
about aligning your money with a better future. By
considering environmental, social, and governance
factors, you invest in companies that are making a
positive impact while potentially achieving strong
returns. It's a powerful tool for a sustainable future, both
for your portfolio and the world.
Thankyou!!