the core, it is a quest for something increasingly crucial in the battle to
improve capitalism and to mitigate climate change: making firms and their
owners accountable for their negative externalities, or the impact of
production or consumption of their products on third parties, such as
atmosphere. By forcing business to recognize the unintended consequences of
many of their activities, the theory is that they should then have a greater
incentive to fix them.
Internalizing the Externalities: Measure for Measures
The measurement is not easy, though, companies may report greenhouse-gas emissions in their annual and sustainability reports, as well as to non-financial standard-setters such as the Global Reporting Initiative (GPI), a standard group. But the key fundamental question is that: “what gets measured gets managed." But what gets measured also gets manipulated. That makes it a continuous challenge to improve data quality.
The most straightforward emissions are those from a company’s day-to-day operations, called:
(a) Scope one from energy suppliers, such as electricity companies.
(b) Scope two based on supply and value-chain such as manufacturing and processing.
(c) Scope three from the final consumer like mineral extraction, transportation, packaging, buy-products.
For ESG Consulting, Data Research and Advisory-ESIR Group will undertakes:
1. ESG Strategy Risk, Sustainability, and Compliance Planning Agenda 2050
2. ESG Investing and Reporting: How to Change Investor's Perceptions; and
3. FCA, SEC and EU Taxonomy Climate Risks Classification and Certification for Financial Services.