Page 4 - Marlborough Chamber Voice Magazine Summer 2022
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PROTECTING OUR ECONOMY, ENVIRONMENT
& COMMUNITY
As part of our strategy, we're working hard to Environmental
promote ways to grow our local economy whilst Environmental criteria may include corporate
protecting our environment. climate policies, energy use, waste, pollution,
natural resource conservation, and treatment of
Growing profit margins and returns on animals. The criteria can also help evaluate any
investments does not have to mean increasing environmental risks a company might face and
our carbon footprints. Finding more sustainable how the company is managing those risks.
and environmentally friendly ways to do
business can actually be more beneficial to the Considerations may include direct and indirect
bottom line and help you to attract investment. greenhouse gas emissions, management of toxic
waste, and compliance with environmental
With this in mind, we're looking into ways to regulations.
help our members to incorporate
Environmental, Social, and Governance (ESG) Social
across their business - helping to grow through Social criteria look at the company’s relationships
investments whilst looking after our people and with stakeholders. Does it hold suppliers to its
our plant. own ESG standards? Does the company donate a
percentage of its profits to the local community
ESG refers to the three key factors when or encourage employees to perform volunteer
measuring the sustainability and ethical impact work there? Do workplace conditions reflect high
of an investment in a business or company. regard for employees’ health and safety? Or does
Most socially responsible investors check the company take unethical advantage of its
companies out using ESG criteria to screen customers?
investments.
Governance
What are Environmental, Social, and ESG governance standards ensure a company
Governance (ESG) Criteria? uses accurate and transparent accounting
ESG criteria are a set of standards for a methods, pursues integrity and diversity in
company’s behaviour used by socially conscious selecting its leadership, and is accountable to
investors to screen potential investments. shareholders. ESG investors may require
Environmental criteria consider how a company assurances that companies avoid conflicts of
safeguards the environment, including interest in their choice of board members and
corporate policies addressing climate change, senior executives, don't use political contributions
for example. Social criteria examine how it to obtain preferential treatment, or engage in
manages relationships with employees, illegal conduct.
suppliers, customers, and the communities
where it operates. Governance deals with a https://www.business.govt.nz/getting-
company’s leadership, executive pay, audits, started/business-planning-tools-and-tips/how-to-
internal controls, and shareholder rights. be-environmentally-sustainable/
ESG investors seek to ensure the companies
they fund are responsible stewards of the
environment, good corporate citizens and are
led by accountable managers.
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