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D1percent05 Dec, 2022Environment
ESG is the criteria used by several investors to predict the future of a company. In simpler terms, it is a set of environmental, social, and governance standards for company operations. It represents risks and opportunities that can impact a company?s stability to create long-term value such as climate change and resource scarcity.
As businesses are making false ESG (Environmental, social, and governance) claims just to increase their bottom lines, ESG reporting has become even more vital. Recently, the investment management arm of Bank of New York Mellon Carp was fined 1.5 million dollars by the US Securities and Exchange Commission due to its funds? deceptive claims about social and environmental criteria just to grab stocks.
ESG or Environmental, Social, and Governance principles are a set of principles on which a company and its investors can measure the impact of its operations and long-term strategies. Today, investors are increasingly expecting the businesses they connect with to recognize and address both short-term and long-term risks and opportunities about ESG factors that can impact long-term value creation.
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