What is ESG? | Why ESG? | ESG Value-Chain solutions | ESG 101 Guide
What is ESG?
ESG stands for Environmental, Social and Governance factors. These provide the framework which allows investors to screen and select a company’s or fund’s sustainability credentials. These factors may influence the sustainable long-term growth and profitability of a company.
ESG has become an increasingly important consideration for investors as it can affect a company’s long-term financial performance and reputation.
ESG factors
- Climate change
- Greenhouse gas (GHG) emission
- Resource depletion, including water, waste and pollution
- Deforestation
- Working conditions
- Local communities
- Conflict regions
- Health and safety
- Employee relations and diversity
- Executive pay
- Bribery and corruption
- Political lobbying and donations
- Board diversity and structure
- Tax strategy
Why ESG?
There are several reasons why ESG (Environmental, Social, and Governance) has become an important consideration for investors:
- Financial performance
Some research has suggested that companies with strong ESG practices may have better financial performance over the long term, as they are able to minimize risk and better manage their operations. - Reputation
Companies with poor ESG practices may face negative publicity and backlash from consumers, employees, and other stakeholders, which can damage their reputation and financial performance. - Risk management
Companies with strong ESG practices may be better equipped to manage risks, such as regulatory changes and supply chain disruptions, which can affect financial performance. - Social responsibility
- Some investors may be motivated by a desire to support companies that align with their values and make a positive social and environmental impact.
- Legal and regulatory considerations
Some countries have implemented laws and regulations that require companies to disclose their ESG practices and performance.
Mission
Achieve Net Zero on Carbon Emission by 2050
Portfolio performance
42% investors take ESG factors into account to improve portfolio performance
Higher ESG investment
Higher equity returns and higher credit ratings
Challenges on ESG and Decarbonization
- Lack of rules and robust metrics
- Green Washing / Data Accountability
- High investment on ESG
ESG Value-Chain Solutions
ESG value chain solutions are strategies and practices that address environmental, social, and governance (ESG) issues across a company’s value chain. A company’s value chain includes all the activities involved in creating and delivering a product or service, from sourcing raw materials to manufacturing and distribution.
By addressing ESG issues throughout the value chain, companies can improve their sustainability and societal impact, as well as mitigate risks and enhance their reputation and financial performance.
ESG Consulting and Reporting
Vantis ESG reporting tool provides comprehensive solutions for enterprises – from ESG frameworks selection, sustainable target settings and monitoring, data collections, performance analysis, generating formatted report to audit service.
Our ESG report will be complied in accordance with the ESG Reporting Guide under Appendix 27 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited for Hong Kong-listed companies.
Carbon and Energy Management
Vantis Platform provides Carbon and Energy Management portal for enterprises to monitor their energy usage, carbon footprint and Greenhouse gas (GHG) emission capture. This user friendly tools assist organizations to easily start with setting boundaries and targets, benchmarking and ESG reporting.
・Net-zero consultation and climate risk advisory
・Assessment report
・Direct to ESG reporting
Carbon Credits
Carbon Credits are permits that allow the owner to emit a certain amount of carbon dioxide or other greenhouse gases. Enterprise measures and set emission reduction targets, then to adopt emission reduction solutions. It enables organisations to compensate for or neutralize emissions that have not yet been eliminated.
・Connect with carbon exchange platforms for carbon credit auctions and trade
・Access to wide variety of high-quality carbon credit projects
・Carbon offset services including carbon credits purchase and retirement process
Green Finance
Green financing is a loan or investment for companies that supports environmentally-friendly activity, such as purchasing environmentally-friendly goods and services or building environmentally-friendly infrastructure.
ESG Trainings
Online/Offline ESG Trainings by Professionals
Joint alliance from esgtraining.org
These trainings are designed for:
・ESG, Compliance, Green Investing Executives
・ESG Project Team in Listed Companies
・Legal staff, Financial Analysts, Investors
・Anyone interested in Sustainability and Green Finance
Green financing is a loan or investment for companies that supports environmentally-friendly activity, such as purchasing environmentally-friendly goods and services or building environmentally-friendly infrastructure.
ESG Audit and Verification
Metaverse Development
NFT and Metaverse Development
Smart Building Consulting Services
BMS
・Digital Twin
・Wiredscore
・Smartscore certification
New Industrialisation and Technology Training Programme (NITTP)
ESG & Business Intelligence solutions training under Industrial 5.0