While it is tempting to split ESG into three neat buckets, the reality is more complex. Environmental, social and governance topics are often interconnected in ways that are critical to understand.
For example, climate change has major societal consequences. Equally, the required carbon transition of our economy will have implications for many people. Large groups of people employed employed in fossil fuels or other polluting sectors are to be retrained and reskilled in “green” jobs . Any environmental goal hence requires social consideration.
Equally, social progress can have environmental consequences. Trying to improve nutrition through greater agricultural productivities can be done in ways harmful to the environment (eg. usage of certain pesticides).
Analysing an environmental goal hence requires one to think about social implications and vice versa.
Fortunately ESGRoadmap can help. Through our tools you can dive into the exact source document where the goal was laid out. Reading the context can allow you to understand whether all relevant ESG areas have been taken into account when setting the goal.
You can carefully consider overlaps between a company’s environmental and social goals. Our thematic tools allow you to extract these, and then compare them. Are they consistent? Or will a firm have to sacrifice one for the other?
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