E: Environment
Environmental criteria look at the way in which companies take into account their impact on the planet, which they seek to minimise to the greatest extent possible. For example:
- Climate change
- Greenhouse gas emissions
- Resource depletion (including water)
- Waste management and pollution
- Deforestation
S : Social
Social criteria look at the way in which companies manage their relationship with their staff, suppliers, clients and the wider communities within which they do business.
- Working conditions, including human trafficking and child labour
- Local communities, especially those housing native populations
- War zones
- Health & safety
- Staff relations, diversity
G: Governance
Governance criteria focus on company management, directors’ remuneration, internal audits and controls, and shareholders’ rights.
- Directors’ remuneration
- Corruption
- Lobbying and donations
- Diversity and the structure of the board of directors
- Fiscal policy
