Source: S&P Global Ratings.
Analysis of 3,297 open-end funds and ETFs globally that use ESG criteria
Many experts assumed ESG focus would fade because of the pandemic. However, despite the importance of Environment and Governance, the companies started huge campaigns to support Social aspect of ESG principles.
communities – how the company is supporting the global community. This pandemic has made clear the value that companies can provide to communities by responding to stakeholder needs. Community engagement involves financial resources to contribute to community needs that include investing in scientific research for a COVID-19 vaccine, testing kits, and providing income support for beleaguered industries.
Since the decision became a complex matter of weighing and balancing multiple factors, corporate management has faced a string of difficult decisions. The health and resilience of the company are in the centre. As a result, boards, which are a company’s governing body, should care not only about returns to shareholders, but about all factors that enable the company to create value over time.
The pandemic restrictions imposed to fight the spread of the disease have provided some short-term positive impacts on the environment. These include temporary improvements in air quality, lower greenhouse gas emissions, and lower levels of noise pollution. However, there are negative consequences such as increased use of single-use plastics that should be considered to stimulate sustainable production and consumption systems to achieve long-term environmental benefits.