ESG

Definition 1

ESG means environmental, social and governance factors [of which the governance shall include issues of [health and safety, safeguarding and gender]] [considered by companies, investors, public sector and other organisations in a wide range of decision-making, strategy development, risk management, and reporting processes OR forming a [published] policy, framework, strategy or objective of a party], including, but not limited to:

(a) environmental factors: climate change, resource depletion, waste, pollution and biodiversity;

(b) social factors: human rights, labour relations, community impact and health and safety; and

(c) governance factors: board structure, executive remuneration, transparency and accountability.

Definition 2

ESG means environmental, social and governance considerations where:

(a) environmental considerations may refer to Climate Change Mitigation and Climate Change Adaptation, as well as the environment more broadly, such as:

(i) the conservation and restoration of Biodiversity including genetic, species, and ecosystem diversity;

(ii) pollution prevention and control;

(iii) the transition to a circular economy;

(iv) the sustainable use and protection of water and marine resources;

(v) waste prevention and recycling; and

(vi) the protection of healthy ecosystems.

(b) social considerations may refer to issues of:

(i) inequality;

(ii) inclusiveness;

(iii) labour relations;

(iv) investment in human capital and communities;

(v) human rights issues; and

(vi) the governance of public and private institutions, including management structures, employee relations and executive remuneration; 

(vii) climate adaptation and resilience to address unavoidable climate impacts; and

(c) governance considerations may refer to:

(i) remuneration policies;

(ii) decision-making processes; and

(ii) adherence to responsible business codes.