AI

Question 1

What are the main social megatrends that influence societies?

Answer 1

a. globalization;
b. automation and AI in manufacturing and service sectors;
c. inequality and wealth creation;
d. digital disruption and social media;
e. changes to work, leisure time, and education;
f. changes to individual rights and responsibilities and family structures;
g. changing demographics, including health and longevity;
h. urbanization;
i. religion.

[none]

Question 2

What are the environmental megatrends with social impact?

Answer 2

a. climate change and transition risk;
b. water scarcity;
c. mass migration.

[none]

Question 3

What are the internal social factors?

Answer 3

a. human capital development;
b. health and safety;
c. human rights;
d. labor rights;
e. freedom of association and employee relations;
f. forced labor;
g. living wage.

[none]

Question 4

What are the external social factors?

Answer 4

a. stakeholder opposition/controversial sourcing;
b. product liability/consumer protection;
c. social opportunities;
d. animal welfare and antimicrobial resistance.

[none]

Question 5

What are the factors to consider when analyzing the materiality of social factors at the company level?

Answer 5

Start with an understanding of materiality at the geographical and industry levels. Then, determine the company-level exposure by looking at the sector it operates in and which countries or regions it mostly operates in (looking at locations of key suppliers, plants, customers, and main tax jurisdictions).

[none]

Question 6

What aspects should analysts assess when evaluating how a company manages social factors?

Answer 6

Analysts should assess:
1. corporate strategy;
2. policies in place;
3. processes and measures implemented;
4. performance indicators;
5. public disclosure.

[none]

Question 7

How can investors gain a better understanding of the potential impacts of social factors on a company’s financial performance?

Answer 7

Investors can integrate social factors into the ratio analysis or financial models of investee companies.

[none]

Question 8

What are some of the social megatrends that influence societies?

Answer 8

a. globalization
b. automation and AI in manufacturing and service sectors
c. inequality and wealth creation
d. digital disruption and social media
e. changes to work, leisure time, and education
f. changes to individual rights and responsibilities and family structures
g. changing demographics, including health and longevity
h. urbanization
i. religion

Question 9

What are some environmental megatrends with social impact?

Answer 9

a. climate change and transition risk
b. water scarcity
c. mass migration

Question 10

What are some internal social factors?

Answer 10

a. human capital development
b. health and safety
c. human rights
d. labor rights
e. freedom of association and employee relations
f. forced labor
g. living wage

Question 11

What are some external social factors?

Answer 11

a. stakeholder opposition/controversial sourcing
b. product liability/consumer protection
c. social opportunities
d. animal welfare and antimicrobial resistance

Question 12

How can the materiality of social factors be determined?

Answer 12

The analysis should start with an understanding of materiality at the geographical and industry levels, then determine the company-level exposure by looking at the sector it operates in and which countries or regions it mostly operates in.

Question 13

What are some factors analysts assess when looking at a company’s management of social risks and opportunities?

Answer 13

1. corporate strategy
2. policies in place
3. processes and measures implemented
4. performance indicators
5. public disclosure

Question 14

How do investors integrate social factors into their analysis of a company’s financial performance?

Answer 14

They integrate social factors into the ratio analysis or financial models of investee companies.