The purpose of ESG evaluation is to understand the sustainability of the organization, and it is recognized as a key indicator for evaluating the ‘organizational sustainability' globally, which serves as a critical investment guide for investors.
Investment using ESG indicators is expected to expand further in the future as it objectively demonstrates the company's sustainable management capabilities and the potential for long-term increase in corporate value.
As the social responsibility of companies and investors for sustainable development becomes important, many financial institutions around the world are using ESG evaluation information. Beginning with the UK (2000), several countries such as Sweden, Germany, Canada, Belgium, and France have introduced the mandatory ESG information disclosure system, centering on pension funds.
The UN promotes socially responsible investment in consideration of ESG issues through the UN Principles for Responsible Investment (UNPRI), launched in 2006.
Examples of ESG Evaluation
