Corporations are facing increasing pressure to offer more
transparency and disclosure with respect to their governance
practices that promote environmental and social sustainability.
This year's trends in Environment Social Governance
(ESG) in the context of Canadian corporate
governance indicate that more and more corporations are including
ESG as part of their core mandates and that investors are looking
and asking for more ESG-related disclosures in making investment
decisions.
What is ESG?
ESG is a general term used in the capital markets referring to
non-financial performance indicators including sustainability,
ethics and corporate governance factors, which measure the
sustainability and ethical impact of an investment. ESG factors
focus on activities that have actual or potential impact on the
environment, human health, and, more broadly, society. Empirical
data shows that the integration of ESG considerations generate
positive impacts on financial
