Environmental factors

The environmental aspect of ESG takes into account how a company uses natural resources, the impact that its operations have on the environment and how that affects the communities it operates in.

Environmental factors may not impact the company/portfolio directly, but they will have a material impact on key stakeholders (customers, consumers, or suppliers).

The main environmental issues considered here include:

1. Climate change risks

2. Carbon emissions

3. Energy consumption

4. Water management

5. Waste and pollution