Chapter 4
Give Me an ‘S’! Investigating the Social Aspects of ESG
IN THIS CHAPTER
Identifying indicators of a company’s social performance
Studying a company’s social awareness and impacts
Determining definitions and measurements for social performance
Choosing weight factors: Social issues and scenario analysis
What does the ‘S’ in ESG mean? Is it Sustainable? Or Stakeholder? Actually, the “Social” factor suffers from the middle child syndrome! There is a sense of exclusion as the ‘E’ (see Chapter 3) is the poster child that everybody talks about and the ‘G’ (see Chapter 5) is the dependable sibling that has the fundamental traits that everybody relies on. Therefore, while the focus on the ESG family has grown in recent years, the wider market still struggles to agree about what aspects the ‘S’ should take in company evaluation and integration into investment decisions.
Companies have made real progress in disclosure on their environmental impact and governance standards, while their social impact and performance measurement is, relatively speaking, the poor stepchild! This can be ...
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