22/07/2020
Assalamualaikum and greetings to all my beloved investors 😉
Jadi pada hari yang indah ini saya mahu berkongsi ilmu baharu......
Sustainability is a rising trend in the world that greatly influenced the financial and investment sector to appreciate the areas for positive growth of a company in the long run.
What is ESG?
ESG – stands for environmental, social and governance – a term that is used by investors to describe areas that characterize a sustainable, responsible, or ethical practices of a company. Companies with strong sustainability show greater operational performance with lower risk. In addition, investment opportunity that incorporates ESG elements has been proven to perform better and creates significant value for both the companies and investor.
E – ENVIROMENT
It is related t the company’s advocacy of nature itself. Matters such as reduction of pollution, waste prevention, and proper environmental management are taken into consideration to create a positive corporate environment.
S – SOCIAL
It is the area to foster a good relationship with three major stakeholders – employees, customers, and community with practices such as diverse workforce, uphold human rights and worker safety standards which will influences a company’s financial performance.
G – GOVERNANCE
Governance deals with areas such as company’s leadership, financial management, and stakeholder rights. A good corporate environment leads to better evaluation within firms. This applies to a company’s legislation with functional and transparent board structure, which affects the company’s leadership environment.