ESG Riks responses

6-1 ECG risks factors COLLAPSE Environmental, Social, and Governance (ECG) is to determine the company impact of the sustainability and ethical practices on its financial performance and operations. ECG framework gain much attention in every domain. This is “because of greater attention of governments and regulators to such factors, and a strong public awareness of the environmental and social influence of companies”. ECG has great effect on organizations growth for example in 2015 Volkswagen’s emission’s scandal cost the company $7 billion just to cover the cost and $4 billion even more than that in penalties. So, environmental, social and governance factors can be extremely challenging to any company. Environmental Factor: This is more concerned company’s influence on the environment and to mitigate wide range of risks as much as possible that could harm the environment. Social Factor: The primarily responsibility of the social factor is to investigates the company’s relationships with other businesses and communities. It includes attitude to diversity, human rights and consumer protection. Corporate Governance: This considers with the internal company’s affairs and the relationship with the company’s stakeholders includes, employees and shareholders. So, any company school know the ECG for assessing the impact financial and operations sustainability. Company should have ability to access the accurate assessment of the factors can be extremely challenging. In order to avoid big penalties.