Читать книгу ESG Investing For Dummies - Brendan Bradley - Страница 22

The global COVID-19 pandemic has shone a spotlight on the social aspects of ESG, with social issues rising from third place to first in the list of investors’ ESG priorities in 2020. While the pandemic has obliged some companies to temporarily deprioritize ESG efforts, investors still believe a strong ESG strategy has a positive impact on share price and flexibility. The additional impact of social movements, such as Black Lives Matter and Me Too, has compelled executive boards to incorporate social risks front and center within new standards for corporate governance structures. Human rights, community relations, customer welfare, and employee health, safety, and well-being have all been moved up the prioritization line.

Furthermore, in addition to boardroom diversity, the attention of companies and investors will move toward diversity across companies, from executive management to the overall workforce. Policies on equal pay, equal opportunity, and corporate culture will also come under closer inspection as the idea of corporate social responsibility morphs into the new concept of corporate purpose, with greater emphasis on all stakeholders as well as shareholders.

However, while disclosures on ESG factors are becoming more standardized and widespread in general, social aspects are still seen as the most difficult element to analyze and integrate from an ESG perspective. Chapter 4 introduces you to the social factor of ESG.