Q1. Flashcards
1
Q
What does ESG do for us?
A
ESG are tools of measurement that allow us as investors to better understand the purpose and quality of management in a bank or investment firm.
2
Q
What are the environmental factors?
A
- Energy efficiency
- Security of water
- Air pollution
- Biodiversity
3
Q
What are the social factors?
A
- Human rights
- Child labour
- Working conditions
- Health and Safety
- Sense of Community
4
Q
What are the governance factors?
A
- Executive compensation
- Independence of the Board
- Shareholders rights
- Alignment of shareholders & worker’s interest
5
Q
What did the ESG report issued by HSBC on the 08 April 2019 state about the way they are reducing their carbon footprint?
A
- Improve aspects of their non-financial performance
- Live up to their fiduciary duty to their stakeholders
- Progress made on HSBC’s decarbonisation roadmap through renewing its power purchase agreements
- 29% of power comes from renewable resources
6
Q
What did the ESG report issued by HSBC on the 08 April 2019 state about the employee satisfaction?
A
- 66% of employees would recommend HSBC as a great place to work
- 49% of employees worked flexible hours in 2018/19 which shows a more employee orientated way of operating
7
Q
Generally, why do banks even bother?
A
- Investors have expressed interest in ESG as a way of gaining a better understanding of a company which as a result pushed the banks to create these reports
