ESG Survive The Boardroom Edn Flashcards
DECK 1 (14 cards)
What does ESG stand for?
Environmental, Social, and Governance.
What’s the point of ESG?
It helps assess risks and opportunities beyond just financials — like climate impact, social equity, and ethical governance.
Is ESG the same as CSR? (Corporate Social Responsibility)
Nope. CSR is more about doing good. ESG is about managing risk and creating long-term value.
What is a stakeholder?
Anyone affected by or influencing a company — employees, customers, investors, even local communities.
What’s a materiality assessment?
Whether ESG is a genuine concerns for long-term success — for business and stakeholders.
Give an example of a physical climate risk.
Hurricanes smashing your warehouse or wildfires threatening your operations.
What’s transition risk in climate change?
Financial, Operational and Reputational threat to a company faces when the world shifts to a low-carbon economy and the company doesn’t adapt fast enough
i.e. Policy Changes, Market Shifts, Customer Prefences and Tech Disruption
IMPACT : Lose money, investors and Customers
s ESG just green bonds or impact investing?
Nah. ESG is a whole framework, not just a product.
How do investors check ESG maturity?
Companies evaluate ESG maturity through sustainability indices i.e. MCSI and DJSI, disclosure platforms CDP, EcoVadis and Global frameworks like GRI and TCFD
Why does ESG matter in supply chains?
Because most environmental/social impact lives there — and bad supplier behavior can blow up your reputation fast.
Think 💡 Boohoo Forced Labour Scandal
Nestle & Palm Oil Child Labor
CDP
Carbon Disclosure Project (ISSA REPORT)
Sustainability Indices
FTSE4Good or DJSI (Dow Jones Sustainability Indices)
Investor Benchmarks
MSCI and Sustainalytics (High Risk or Low Risk)
Poor ESG Maturity
Scares investors lack of investor trust and confidence through potential stranded assets or greenwashing headlines
Attracts regulators so constant scrutiny
Turns off consumers particularly if they are eco conscious
