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With reference to the Environmental-Social-Governance (ESG), consider the following statements:
1. It is a term that has been coined to refer to specific data designed to be used by investors for evaluating the material risk that the organization is taking on based on the externalities it is generating.
2. ESG reporting in India commenced in 2009 with the Ministry of Corporate Affairs (MCA) issuing the Voluntary Guidelines on Corporate Social Responsibility.
Which of the statements given above is/are correct?
- a)1 only
- b)2 only
- c)Both 1 and 2
- d)Neither 1 nor 2
Correct answer is option 'C'. Can you explain this answer?
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With reference to the Environmental-Social-Governance (ESG), consider ...
The correct answer is option 'C' - both statements 1 and 2 are correct.
Explanation:
1. Environmental-Social-Governance (ESG) is a term that refers to specific data used by investors to evaluate the material risk that an organization is taking on based on the externalities it is generating. ESG factors encompass environmental factors (such as climate change, resource depletion, and pollution), social factors (such as labor standards, human rights, and community engagement), and governance factors (such as board composition, executive compensation, and shareholder rights). Evaluating these factors helps investors assess the sustainability and societal impact of an organization.
2. ESG reporting in India did commence in 2009 with the Ministry of Corporate Affairs (MCA) issuing the Voluntary Guidelines on Corporate Social Responsibility. These guidelines were aimed at encouraging companies to adopt responsible business practices and disclose their impact on society and the environment. The guidelines provide a framework for companies to report on their environmental, social, and governance initiatives voluntarily.
ESG reporting in India has further evolved since the issuance of the Voluntary Guidelines on Corporate Social Responsibility. In 2012, the Securities and Exchange Board of India (SEBI) mandated the top 100 listed companies to submit Business Responsibility Reports (BRRs) as part of their annual reports, which include disclosure on ESG factors. This move aimed to enhance transparency and accountability in corporate practices.
In recent years, there has been a growing recognition of the importance of ESG factors in investment decisions, leading to increased focus on ESG reporting by companies. The MCA has also introduced the Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021, which further strengthens the reporting requirements and expands the scope of corporate social responsibility.
In conclusion, statement 1 correctly defines ESG as a term used by investors to evaluate the material risk generated by organizations based on externalities. Statement 2 is also correct as ESG reporting in India did commence in 2009 with the issuance of the Voluntary Guidelines on Corporate Social Responsibility by the Ministry of Corporate Affairs.
Explanation:
1. Environmental-Social-Governance (ESG) is a term that refers to specific data used by investors to evaluate the material risk that an organization is taking on based on the externalities it is generating. ESG factors encompass environmental factors (such as climate change, resource depletion, and pollution), social factors (such as labor standards, human rights, and community engagement), and governance factors (such as board composition, executive compensation, and shareholder rights). Evaluating these factors helps investors assess the sustainability and societal impact of an organization.
2. ESG reporting in India did commence in 2009 with the Ministry of Corporate Affairs (MCA) issuing the Voluntary Guidelines on Corporate Social Responsibility. These guidelines were aimed at encouraging companies to adopt responsible business practices and disclose their impact on society and the environment. The guidelines provide a framework for companies to report on their environmental, social, and governance initiatives voluntarily.
ESG reporting in India has further evolved since the issuance of the Voluntary Guidelines on Corporate Social Responsibility. In 2012, the Securities and Exchange Board of India (SEBI) mandated the top 100 listed companies to submit Business Responsibility Reports (BRRs) as part of their annual reports, which include disclosure on ESG factors. This move aimed to enhance transparency and accountability in corporate practices.
In recent years, there has been a growing recognition of the importance of ESG factors in investment decisions, leading to increased focus on ESG reporting by companies. The MCA has also introduced the Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021, which further strengthens the reporting requirements and expands the scope of corporate social responsibility.
In conclusion, statement 1 correctly defines ESG as a term used by investors to evaluate the material risk generated by organizations based on externalities. Statement 2 is also correct as ESG reporting in India did commence in 2009 with the issuance of the Voluntary Guidelines on Corporate Social Responsibility by the Ministry of Corporate Affairs.
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With reference to the Environmental-Social-Governance (ESG), consider ...
Indian Institute of Corporate Affairs, an autonomous institution under the aegis of the Ministry of Corporate Affairs, Government of India recently launched a programme to create 'impact leaders' in the areas of Environmental-Social-Governance (ESG).
- ESG (Environmental, social, and corporate governance) is a term that has been coined to refer to specific data designed to be used by investors for evaluating the material risk that the organization is taking on based on the externalities it is generating.
- Broadly the ESG can be categorised as:
- Environmental aspect: Data is reported on climate change, greenhouse gas emissions, biodiversity loss, deforestation, pollution, energy efficiency and water management.
- Social aspect: Data is reported on employee safety and health, working conditions, diversity, equity, and inclusion, conflicts and humanitarian crises and is relevant in risk and return assessments directly through results in enhancing (or destroying) customer satisfaction and employee engagement.
- Governance aspect: Data is reported on corporate governance such as preventing bribery, corruption, diversity of Board of Directors, executive compensation, cybersecurity and privacy practices, management structure, executive pay, diversity in leadership, manner in which the leadership responds to and interacts with shareholders, audits, internal controls, and shareholder rights.
ESG in India:
- ESG reporting in India commenced in 2009 with the Ministry of Corporate Affairs (MCA) issuing the Voluntary Guidelines on Corporate Social Responsibility.
- With effect from the financial year 2022-2023, filing of Business Responsibility and Sustainability Report (BRSR) has been made mandatory for the top 1000 listed companies (by market capitalization) and has replaced the existing Business Responsibility Reporting ("BRR").
Hence both statements are correct.
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With reference to the Environmental-Social-Governance (ESG), consider the following statements:1. It is a term that has been coined to refer to specific data designed to be used by investors for evaluating the material risk that the organization is taking on based on the externalities it is generating.2. ESG reporting in India commenced in 2009 with the Ministry of Corporate Affairs (MCA) issuing the Voluntary Guidelines on Corporate Social Responsibility.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer?
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With reference to the Environmental-Social-Governance (ESG), consider the following statements:1. It is a term that has been coined to refer to specific data designed to be used by investors for evaluating the material risk that the organization is taking on based on the externalities it is generating.2. ESG reporting in India commenced in 2009 with the Ministry of Corporate Affairs (MCA) issuing the Voluntary Guidelines on Corporate Social Responsibility.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about With reference to the Environmental-Social-Governance (ESG), consider the following statements:1. It is a term that has been coined to refer to specific data designed to be used by investors for evaluating the material risk that the organization is taking on based on the externalities it is generating.2. ESG reporting in India commenced in 2009 with the Ministry of Corporate Affairs (MCA) issuing the Voluntary Guidelines on Corporate Social Responsibility.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for With reference to the Environmental-Social-Governance (ESG), consider the following statements:1. It is a term that has been coined to refer to specific data designed to be used by investors for evaluating the material risk that the organization is taking on based on the externalities it is generating.2. ESG reporting in India commenced in 2009 with the Ministry of Corporate Affairs (MCA) issuing the Voluntary Guidelines on Corporate Social Responsibility.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer?.
With reference to the Environmental-Social-Governance (ESG), consider the following statements:1. It is a term that has been coined to refer to specific data designed to be used by investors for evaluating the material risk that the organization is taking on based on the externalities it is generating.2. ESG reporting in India commenced in 2009 with the Ministry of Corporate Affairs (MCA) issuing the Voluntary Guidelines on Corporate Social Responsibility.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about With reference to the Environmental-Social-Governance (ESG), consider the following statements:1. It is a term that has been coined to refer to specific data designed to be used by investors for evaluating the material risk that the organization is taking on based on the externalities it is generating.2. ESG reporting in India commenced in 2009 with the Ministry of Corporate Affairs (MCA) issuing the Voluntary Guidelines on Corporate Social Responsibility.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for With reference to the Environmental-Social-Governance (ESG), consider the following statements:1. It is a term that has been coined to refer to specific data designed to be used by investors for evaluating the material risk that the organization is taking on based on the externalities it is generating.2. ESG reporting in India commenced in 2009 with the Ministry of Corporate Affairs (MCA) issuing the Voluntary Guidelines on Corporate Social Responsibility.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer?.
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