ESG

Question 1

ESG Guideline (why need to disclose)

Answer 1

1. Relevance - to make better investment decisions
   - Profitability alone is not sufficient information
   - Must show KPIs
2. Opportunities - Investors aim for long term financial goals and recent developments
   - Show excellence track record - attract investor
3. Valuation Models - Safeguard a company’s long term success
   - Investors are willing to pay premium
4. Risks - Allows component to be more transparent and open about their ESG policies. Investors are more willing to accept the compliance costs.