Responsible financing and investment: identification, development, and assessment of Environmental, Social, and Governance (ESG) metrics

Abstract

Globally, the Environmental, Social, and Governance (ESG) movement is gaining significant attention. The existing frameworks need to be more standardized and applicable to socio-economic dynamics. A three-phased approach was developed comprised of a comprehensive review and a research survey involving 62 experts. The results showed that the environmental component is ≈5–14 % more important than the social and governance components. The design, operational life, and material sourcing are relatively more important (i.e., ≈14–20 %) than the project type. Risks related to water and air pollution are ≈34–38 % more important than solid wastes. This research offers insights into ESG criteria and metrics.

Keywords

• Risk characterization
• Environmental, social, and governance (ESG)
• Responsible investing
• Research Survey
• Decision Making