ESG and Net-Zero goals

ESG+R Goals

ESG+R stands for Environmental, Social, and Governance plus Resilience. It is a framework used to assess and evaluate the sustainability and ethical practices of a company or investment portfolio.

ESG factors refer to the three key areas that are assessed to evaluate the sustainability and ethical practices of a company or portfolio.

Environmental factors evaluate the company's impact on the environment and how they manage their environmental risks. This can include factors such as climate change, carbon emissions, waste management, and water usage.

Social factors evaluate the company's impact on society, including their relationships with customers, employees, suppliers, and the communities in which they operate. This can include factors such as diversity and inclusion, labor practices, and human rights.

Governance factors evaluate the company's management structure, policies, and processes. This can include factors such as board diversity, executive compensation, and shareholder rights.

The "R" in ESG+R refers to Resilience, which represents a company's ability to adapt to changing circumstances and to withstand disruptions, such as natural disasters, pandemics, or other unforeseen events. Resilience factors can include a company's supply chain management, risk management practices, and business continuity planning.

Overall, the ESG+R framework is used by investors and stakeholders to evaluate the sustainability and ethical practices of companies and investment portfolios, helping them to make more informed decisions based on environmental, social, governance, and resilience considerations.

Net-Zero goals

Net-zero goals refer to the target of reducing greenhouse gas emissions to a level where any remaining emissions are balanced out by the removal of an equivalent amount of greenhouse gases from the atmosphere. In other words, net-zero means achieving a balance between the emissions released into the atmosphere and the emissions removed or avoided.

To achieve net-zero, a company must reduce their greenhouse gas emissions through various strategies, such as increasing energy efficiency, transitioning to renewable energy sources, and adopting sustainable practices. Any remaining emissions that cannot be eliminated must be offset by carbon removal methods such as carbon capture and storage or afforestation.

Net-zero goals have become increasingly popular as a response to the urgent need to address climate change. The Paris Agreement, signed by 196 countries in 2015, aims to limit global temperature rise to well below 2°C above pre-industrial levels and to pursue efforts to limit the increase to 1.5°C. To achieve this goal, countries and companies have set targets to reach net-zero emissions by a certain date, typically by 2050.

Net-zero goals have several benefits. They reduce greenhouse gas emissions, which helps to mitigate the impacts of climate change, such as rising sea levels, more frequent and intense heatwaves, and more severe weather events. Additionally, they promote the transition to a low-carbon economy, which can lead to economic growth, job creation, and improved public health.