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What is an Environmental and Social Policy Framework

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stefenema

The environmental social and governance framework is a set of standards and guidelines that companies can use to improve their environmental, social and governance practices. The framework is voluntary and companies can choose to adopt all or part of it. The aim of the framework is to help companies improve their performance in these areas, and to make them more accountable to stakeholders.


The governance framework is based on international best practices, and has been developed by a range of experts from business, government, academia and civil society. It is supported by leading businesses and investors, including the Business Round-table, the World Business Council for Sustainable Development, the Investor Group on Climate Change and the Principles for Responsible Investment.


The environmental social and governance framework is not a prescriptive checklist of things that companies must do. Rather, it provides guidance on how companies can identify and manage risks in these areas, and improve their performance. It also sets out principles for disclosure and reporting of environmental, social and governance information.


The adoption of the environmental and governance framework is growing globally, with an increasing number of companies using it to guide their policies and practices. In 2017, over 1,000 companies had adopted the framework, representing a 20% increase from 2016.


ESG (Environmental, Social, and Governance) concerns refer to the environmental, social, and governance factors that can affect a company's performance and reputation. These concerns are often used by investors to assess the sustainability and ethical impact of an investment. Some specific examples of ESG concerns include a company's carbon emissions, labor practices, and executive compensation, as well as its impact on the community and the environment. By considering these factors, investors can make informed decisions about the long-term risks and opportunities associated with a company or investment.

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