Our vision
The aim of the ESG Committee is to advocate for greater incorporation of ESG issues and practices in corporations, develop relationships with external organizations and initiatives related to ESG and build a network of ESG-conscious/aware individuals for a better tomorrow.
Additionally, by encouraging long-term growth and success plans, assisting the company in considering the interests of all stakeholders, enhancing management processes and reducing the danger of mismanagement, and inspiring investor faith, strong corporate governance helps make companies more robust.
OUR ARTICLES
The Birth of ESG
In 2005, the phrase "ESG" was first used in the seminal study "Who Cares Wins." When former UN Secretary General Kofi Annan wrote to more than 50 CEOs of significant financial institutions in January 2004, he invited them to take part in a joint initiative run by the UN Global Compact and supported by the International Finance Corporation (IFC) and the Swiss Government. This was the beginning of the story of ESG investing. The initiative's objective was to figure out how to incorporate ESG into the financial markets. This endeavour later resulted in a report with the working title "Who Cares Wins," written by Ivo Knoepfel. In the paper, it was argued that it makes excellent financial sense to include environmental, social, and governance concerns into capital markets since doing so promotes more sustainable markets and better societal results.
EMERGING CONCEPTS IN ESG
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CARBON FOOTPRINTS
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GREENWASHING
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ESG ANALYST
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CARBON MARKET
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ASSET ALLOCATION
Carbon footprints
It is a way to gauge how much greenhouse gases (GHG) are released into the atmosphere. The term "carbon footprint" was coined since more than 78% of all GHG emissions produced are made up of carbon. It encompasses emissions from all of a person's or an entity's operations. It comprises of direct emissions from the burning of fossil fuels in manufacturing, heating, and transportation, as well as indirect emissions from the production of electricity used to operate the consumption of products and services.
Greenwashing
In spite of the fact that their goods or services are anything but ecologically friendly, businesses utilise the marketing strategy known as "greenwashing" to attract eco-aware clients. Greenwashing occurs when companies falsely or intentionally misrepresent their activities while presenting themselves as sustainable.
For example: Volkswagen's admission that it had cheated on emissions testing by equipping a number of vehicles with a "defect" device that could recognise when it was being tested for emissions and change its behaviour to lower the level of pollutants is a prime example of greenwashing.
ESG Analyst
The majority of an ESG analyst's work is conducting desk research on corporate disclosures including the environment, society, and governance. Reviewing business papers including annual reports, sustainability reports, and other internal and external publications is part of this process.
Carbon Market
The management teams of firms can buy and sell various instruments that are related to greenhouse gas emissions in a carbon market. The two types of instruments that are exchanged are carbon credits (also called allowances and carbon offsets. Carbon markets come in two forms: compliance markets and voluntary markets. Regulation markets and emissions trading plans are other names for compliance markets (or ETS)
GREEN BONDS
the flagship form of activity-based Sustainable Finance in which a bond financing is expressly linked to business activities with green attributes. Green Bonds are generally characterized by their disclosure of the eligible projects the bond proceeds will be allocated to and the level of reporting that will be provided, with minimal or no changes to the definitive debt documents. See also Social Bond and Sustainability Bond.
BLUE BONDS
A form of activity-based Sustainable Finance analogous to a Green Bond but distinguished for focusing both more narrowly on ocean or marine-based environmental conditions and also more broadly on the Sustainable Development of related terrestrial industries such as value-added processing facilities.
CARBON CREDIT
A tradable permit or certificate that provides the holder of the credit the right to emit 1 ton of carbon dioxide or an equivalent amount of another GHG. Countries and businesses participating in Emissions reduction agreements are afforded a set amount of GHGs they can emit each year, and can buy and sell these credits depending on their needs
CARBON FINANCE
A type of financing for projects tied to reductions in GHG Emissions. Those reductions are translated into tradable financial instruments (such as allowances or Carbon Offsets) that companies can use to satisfy regulatory obligations or for voluntary emissions reductions purposes.
CLIMATE DISCLOSURE
LEADERSHIP INDEX
A list of companies compiled by PwC that rates their approach to disclosing Climate Change-related information. Each company is given a rating from A to F in terms of awareness, management, and leadership.
CORPORATE SUSTAINABILITY
INDEX/ISE
A tool launched in 2005 in Latin America that is used to rate and compare companies in their performance on issues related to social justice, Corporate Governance, sustainability, and Environmental Impact.
DOW JONES WORLD SUSTAINABILITY
INDEX
A subset of the Dow Jones Sustainability Index that, based on ESG data, identifies the top 10% of the 2,500 companies generally listed on the Dow Jones indexes in terms of sustainability.
EUROPEAN
GREEN
DEAL
A package of measures proposed by the European Commission to achieve the European Union objective of Carbon Neutrality by 2050. The European Green Deal addresses all sectors of the economy and establishes funds in order to encourage the sustainable investment required to achieve Carbon Neutrality by 2050.
SUSTAINABILITY
BOND
A bond issued to finance a mix of green and social projects, as described in the Sustainability Bond Guidelines. See also Green Bond and Social Bond.
Nike
Corporate Responsibility, Sustainability & Governance Committee
“Review and evaluate the Company’s significant strategies, activities, policies, investments and programs regarding corporate purpose, including corporate responsibility, sustainability, human rights, global community and social impact, and diversity and inclusion."
FEDX
Nominating and Governance Committee
“Review and evaluate the Company’s significant strategies, activities, policies, investments and programs regarding corporate purpose, including corporate responsibility, sustainability, human rights, global community and social impact, and diversity and inclusion."
ALPHABET
Audit and Compliance Committee
“Review and discuss with management Alphabet’s major risk exposures, including financial, operational, data privacy and security, competition, legal, regulatory, compliance, civil and human rights, sustainability, and reputational risks, and the steps Alphabet takes to prevent, detect, monitor, and actively manage such exposures.”
ABOUT US
Co-Founders
Farhanaz Hazari
Carry out a random act of kindness with no expectation of reward, safe in the knowledge that one day someone might do the same for you.” These instilling words by Princess Diana moved my heart and made me wonder, In what ways could I do my part in doing something even remotely kind to give back to Mother Earth what I have been showered with all my life while still pursuing my dream of becoming a lawyer. In my journey to find a way to achieve my vision, I was introduced to the concept of "ESG”. While on one hand, it resonates with Diana’s concept of kindness since most corporations fail to understand the requirement of community service, it also adds value to a sustainable corporate environment built on ethical governance and preserving the environment. The object of ‘The ESG Committee’ is to instill the importance of ESG disclosures (country/continent specific) and provide creative solutions for a sustainable corporate environment. Being able to put my ideas and research into action is humbling and yet challenging at the same time and I look forward to my ‘ESG Journey’ for making a better tomorrow.
Anshika Tyagi
Anshika Tyagi, a third year law student at Maharashtra National Law University studying an integrated course of B.A( LLB) Hons. " Moving Ahead With All, For All" The increased activism about meeting climate targets set at the COP by different countries and due to related challenges being posed by the same towards conventional notions of taking business decisions and risk management. This observation has been becoming a driving force behind major countries around the globe. With the rising concerns about climate change and aspects related to sustainability, it has become of paramount importance that the businesses of future require some affirmative policy changes in their working to make its objectives broad enough to be receptive to the demands of society and the environment, upon which the survival of every business depends. The Environmental, Social and Governance ( ESG ) Committee is based on this understanding adapting to the changing world by incorporating some corrective and precautionary measures for longer continuance of the businesses. The ESG Committee is formulated to research on these new challenges being posed which will become instrumental in having policy changes leading to a balanced and strategic risk management by the business entities. Through this, the ESG Committee aspires to build a resilient and proactive corporate regime.