Today, with the global emphasis on sustainable development, ESG (Environmental, Social and Corporate Governance) has been highly valued by both international and domestic societies. As an ESG auditor, you should have a variety of capabilities to deal with the complex environment of sustainability and corporate responsibility.
More and more enterprises are gradually moving from spontaneous to conscious, from ideas to action, and industry leaders represented by many leading enterprises have begun to continuously tilt resources towards ESG. Behind it are the multiple factors of technology leadership, responsibility and sustainable development, which seek to build new competitive advantages through industrial upgrading and achieve high-quality growth in the global economic development.
ESG ratings are an assessment of a company's environmental, social and governance performance. It is a rating agency that evaluates the company's ESG performance according to certain evaluation standards and methods, and evaluates the company's ESG rating based on the company's ESG performance.
ESG certification requires companies to apply for a framework and prepare a standard report
UN SDGs: Understanding and aligning with the Sustainable Development Goals.
The 2030 Agenda for Sustainable Development, adopted by all UN Member States in 2015, provides a common blueprint for peace and prosperity now and in the future for people and the planet. At its core are the 17 Sustainable Development Goals (SDGs), an urgent call for action by all countries in a global partnership.
These initiatives aim to develop guidelines and recommendations on how to better integrate environmental, social and corporate governance issues into asset management, brokerage services and related research functions. Eighteen financial institutions from nine countries with more than $6 trillion in assets under management participated in the preparation of the report.
UN GC: Adhering to the principles of the UN Global Compact.
By incorporating the ten principles of the UN Global Compact into strategies, policies and procedures, and building a culture of integrity, businesses not only fulfill their fundamental responsibilities to people and the planet, but also lay the foundation for long-term success.
Human rights. Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights;
Principle 2: Ensure that they do not complicit in human rights violations.
Labor. Principle 3: Businesses should uphold freedom of association and effectively recognize the right to collective bargaining;
Principle 4: Elimination of all forms of forced and compulsory labour;
Principle 5: Effective abolition of child labour;
Principle 6: Eliminate discrimination in respect of employment and occupation.
Environment. Principle 7: Businesses should support the adoption of preventive measures to address environmental challenges;
Principle 8: Take initiatives to promote greater environmental responsibility;
Principle 9: Encourage the development and diffusion of environmentally friendly technologies.
Anti-corruption. Principle 10: Businesses should oppose corruption in all its forms, including extortion and bribery.
ESG rating criteria include the following aspects:
1. Environmental performance: refers to the performance of the enterprise in environmental protection, resource utilization and energy consumption.
2. Social responsibility performance: refers to the performance of the enterprise in terms of employee rights, social responsibility, community contribution, etc.
3. Corporate governance performance: refers to the performance of the enterprise in corporate governance, auditing and risk management.
ESG rating criteria vary from rating agency to rating agency, but they all use the above three indicators as the basis for ratings.