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ESG Metrics: Understanding the Key Drivers of Responsible Investing

Have you ever wondered how your investments could contribute to a more sustainable and responsible world?

The integration of Environmental, Social, and Governance (ESG) principles is reshaping traditional investment strategies, paving the way for a future where responsible investing goes hand in hand with financial success. This article dives into the intricacies of ESG metrics, frameworks and approaches, exploring the key drivers that make them essential for responsible investing.

Here’s a detailed list of various ESG metrics and frameworks, along with different approaches and guidelines used by investors and companies:

Environmental Metrics:

Carbon Footprint:

• Measures the total greenhouse gas emissions directly and indirectly associated with a company’s operations.

Energy Consumption:

• Evaluates a company’s energy usage, with a focus on efficiency and reliance on renewable energy sources.

Water Management:

• Assesses a company’s water usage, conservation efforts, and strategies for responsible water stewardship.