Francesco Morini’s Post

Top 5 ESG Mistakes Malaysian Listed Companies to Avoid, with Examples. The whole idea is, while making money, do some good to society and environment. And while doing good, minimise the external environmental & societal risks that are out of your control previously and advertise the data. The ESG data is collected from self-advertised data by the Company in the Sustainability Report (SR), Annual Report, and from the publicly available sources. - The Rating Agency will not hammer the Company for data, nor it will not ask Company's opinion. The ESG score is based on annual review and revision by analytical staff. 🛑 The Mistakes; 1. Overlooking at Useful Data. ♻️ It is critical to ensure the disclosed data move the company up in the ESG ladder. - For example, 1 Ha of land is needed to produce, 3.6 tonnes of Palm Oil. On the other hand, 9 Ha of land is needed to produce the same amount of 3.6 tonnes Soybean Oil. That simply means, you need to open up 9 times of forest area if trying to replace the supply of Palm Oil with Soybean oil. 😅This kind of informations unavailable on the millers website. 2. Over-Reaction to Allegation. ♻️ A dedicaticated team to asses on an ongoing basis the severity of controversy and deduction of score. If you increase the data on the negative direction, it will decrease the score. - For example, the allegation of labour abuse is common in palm oil sector. The over-reaction will increase informations on the negative direction. 3. Failing to Priortize ESG Matters. ♻️ ESG matters should be ranked and prioritized in order to make your report concise and meaningful. Reporting on too many ESG topics can restrict the SR's informative value. - Not to have SRs with full of CSR activities and board directors profiles. Financially relevant ESG performance data must be priortized. 4. Not having Outstanding ESG Goals. ♻️ Sustainability actions should lead to a competitive edge, your business should not merely describing the status quo. It must be more than what's on the baseline and comparatively better than your peer. 5. Not having Target Emission Reduction. ♻️ GHG emissions disclosure is a critical climate change mitigation tool, as well as a key step towards the target reduction. - For example, in oil&gas industry, if methane emissions from venting, leakage, and flaring are disclosed. You should include together the action plan to minimise it and the targets. ✅ Nevertheless, we've produced some extremely good SRs over the years such as AirAsia SRs, Tenaga Nasional Berhad SRs, Press Metal SRs 😊. #ESG #GRI #TCFD #Economy #Renewableenergy #Future #Technology #Management #Innovation #Greenenergy #Singapore #China #India #Sustainability #Environment #Malaysia

ESG – Can it mean anything to anyone? Last week, I listened politely to a businessman turned academic turned ESG consultant expounding on the virtues of his IP-protected approach to defining, measuring and reporting ESG, and to his view that those who differ are just selling their clients a cheap chance to ‘game the system.’ Really? I don’t know if he was genuinely passionate or just a charlatan trying to sell snake oil, but the one thing I do know is that there are no universal definitions, or methods of measurement, or standards of disclosure / reporting, for ESG. There are differences between countries & cultures. The manner in which ESG is understood, and the relative importance of the many elements within ESG, is very different between the USA, the EU, and Asia, for example (ignoring differences between China & India). Then there are differences between sectors of industry. The definitions and importance of ESG elements between companies in the metals & mining sector, the IT sector, the banking & insurance sector, the fisheries & forestry sector, and the professional sports sector are all different to one another. There are also differences between geographical regions. Water is a useful example, a natural resource in abundance in the US north west and in desperately short supply in the south west. The Colorado River only contains a finite amount of water, for which there is competition from farmers, municipalities, and industries within Colorado, Utah, Nevada, Arizona and California. When there isn’t enough for everyone, who gets priority? This is a problem the north west doesn’t have. Yet another difference is between various industry standards, dominated by the ‘Group of 5’ such as CDP, CDSB, GRI, IIRC and SASB, which, since COP26 in 2021, have slowly started exploring possible mergers, or at least interoperability between their standards, with a view to one day coalescing into the International Sustainability Standards Board (ISSB) under the IFRS Foundation, a move supported by the International Organization of Securities Commissions (IOSCO). Finally, there have always been differences between the large ESG ratings agencies, namely MSCI and Sustainalytics, as well as RepRisk, which define and measure ESG in different ways, resulting in only a 32% correlation between their different ESG ratings of the same companies (in the S&P Global 1200 index) in 2016, which dropped down to 8% in 2021 as definitions and methods of measuring and reporting diverged (CSRHub). One day in the future there might well be an Accounting Standards Board equivalent for highly standardized ESG, but until then any consultant’s ‘one size fits all’ approach will never be universally applicable. ESG is currently a young and evolving field, in which even sincere practitioners differ, so it’s not a question of ‘right or wrong,’ but rather of what is appropriate in any one company’s specific circumstances. 

*Today's Topic about ESG* ESG stands for Environmental, Social & Governance. These are called 3 pillars in ESG frameworks and represent the 3 main topic areas that companies are expected to report in. *WHO INVENTED ESG* The first group to coin the phrase ESG was the *United Nations* Environment Programme Initiative in the Fresh fields Report in October 2005. In 2004 report from the United Nations – titled *Who Cares Wins –* carried what is widely considered the first mainstream mention of ESG in the modern context. This report leaned heavily, encouraging all business stakeholders to embrace ESG long-term. What covers in ESG? Carbon emissions. Air and water pollution. Deforestation. Green energy initiatives. Waste management. Water usage. *ESG and CSR the same?* What is the difference between CSR and ESG? Corporate Social Responsibility (CSR) refers to sustainability strategizes businesses employ to ensure that the company is carried out ethically. In contrast, Environmental, Social and Governance (ESG) are criteria used to measure a company's overall sustainability. *Who Measures* Performance and Assigns an ESG Score? These scoring systems can be from finance and investment firms, consulting groups, standard-setting bodies, NGOs, and even Government agencies. Finally ESG rating services can now only be provided by entities that have been certified by the Securities and Exchange Board of India. In fact, foreign agencies that provide ESG rating services, will also require to obtain Sebi certification, if they aspire to provide rating services to entities located in India. thank you & JAI SRI RAM

ESG (Environmental, Social, and Governance) is a framework for evaluating a company's commitment to sustainability, social responsibility, and ethical governance. Rooted in global efforts to align corporate behavior with environmental and humanitarian values, ESG has evolved into a crucial investment criterion, balancing profitability with long-term sustainability. Key global initiatives like the Paris Agreement and the UN's Sustainable Development Goals have shaped its development. In India, SEBI and the Ministry of Corporate Affairs regulate ESG practices, with the 2022 Business Responsibility and Sustainability Reporting (BRSR) framework requiring disclosures from the top 1,000 listed companies. Recent legislative advancements have introduced guidelines for ESG mutual funds, standardized ESG ratings, and expanded sustainable finance options like green and blue bonds. While ESG regulations promote transparency and accountability, challenges around greenwashing and supply chain sustainability remain critical concerns.

SEBI's Proposed ESG Simplifications! A game-changer for Indian businesses. The recent SEBI consultation paper on ESG reporting is a significant step towards making sustainability reporting more accessible for Indian businesses. Key proposed changes include relaxed value chain reporting, introduction of green credits, shift from assurance to assessment and more. These changes are expected to foster a more inclusive and efficient ESG reporting ecosystem in India. We have discussed how these proposals can impact your business and compliance strategy. Click the link below to read our blog: https://lnkd.in/g5XSBqQ2 #ESG #SEBI #Sustainability #Compliance #India #Business #CorporateSocialResponsibility #CSR

How companies are tweaking ESG disclosures selectively The Environment, Social and Governance (ESG) disclosures as mandated by SEBI is still in the nascent stage in India but an assessment of the last three years' submissions by corporates found that companies are tweaking them on their own https://lnkd.in/d6dv9Ndi

GREEN GAME CHANGERS: INDIA'S RISE IN ESG REPORTING!🌱 Indian companies are stepping up their game in Environmental, Social, and Governance (ESG) reporting! According to a recent report by PwC India, 51% of the top 100 listed companies disclosed their Scope 3 emissions data for FY23, showcasing a commitment to transparency and sustainability. Scope 3 emissions are crucial because they help understand a company's overall impact on the environment. These emissions include everything from raw material sourcing to product disposal.📈 ESG reporting evaluates a company's environmental, social, and governance performance, aiding informed decisions by investors and stakeholders. BRSR, introduced by SEBI in May 2021, replaces BRR, aligning with global standards and making ESG reporting mandatory, enhancing transparency and accountability.🌎 Key Findings📊: - 51% of India's top 100 listed companies disclosed their Scope 3 emissions data for FY23, despite it being voluntary. - 44% conducted life-cycle assessments of their products/services. - 89% disclosed information on leadership indicators. - 34% reduced Scope 1 emissions, and 29% reduced Scope 2 emissions. - 49% increased energy consumption from renewable sources. - 31% disclosed their net-zero targets. https://lnkd.in/dZfm-Szx Impact on India's ESG Landscape🔄🇮🇳: •💡The increase in Scope 3 disclosures and other ESG metrics highlights a growing awareness and commitment to sustainability among Indian businesses. This move not only benefits the environment but also fosters trust and credibility with investors and stakeholders. •Moving Towards Net Zero0️⃣: With India's ambitious goal of achieving net zero emissions by 2070, businesses play a pivotal role. By embracing ESG reporting and implementing sustainable practices, companies can contribute to India's green transition and create a resilient future. •Reducing greenhouse gas emissions is not only an environmental necessity but also an economic and social imperative.🏢 Many companies are taking initiatives to reduce their carbon footprint by adopting energy-efficient technologies, shifting to renewable energy sources, and implementing other sustainable practices. As ESG reporting becomes mainstream, what legal challenges might arise for companies in ensuring compliance with BRSR regulations? Let's discuss how businesses can navigate this evolving landscape while meeting regulatory requirements and maximizing ESG impact. hashtag #ESGinsights #sustainability #SocialImpact #ResponsibleBusiness #ClimateAction Disclaimer: The Content in this post is for informational purposes only derived from references and does not constitute any professional advice. We do not claim ownership of any data or Information referenced.

Excited to share my article published in ET Edge Insights on 'Navigating ESG Transformations' which have co-authored with my colleague CA Tarang Aggarwal. From global initiatives shaping ESG standards to India's pioneering efforts in driving sustainability reporting, it gives a comprehensive overview of the evolving ESG landscape. Organizations and professionals can leverage ESG principles to drive innovation, enhance resilience, and create lasting value for stakeholders. Happy to have your thoughts. #ESG #Sustainability #CorporateResponsibility #BusinessLeadership #ETEdgeInsights

India's ESG Reporting is Making Waves! 🌱 The voluntary transparency marks a significant step towards sustainability and accountability in India's business landscape. Key findings include increases in renewable energy use and net-zero targets. As ESG reporting gains momentum, let's discuss the legal challenges and how businesses can navigate this evolving landscape while maximizing their ESG impact. #ESG #Sustainability #ClimateAction #ResponsibleBusiness #India

Embrace the ESG revolution! 🌱 Learn how India is leading the charge with SEBI's mandatory BRSR framework, positioning the nation as a global leader in sustainable reporting. Read more #ETInsights #ESG #Sustainability #ResponsibleBusiness #SEBI #India #BRSR Gaurav Bhatia