ESG Criteria are essential for companies wishing to attract investment

What investors, governments, customers and stakeholders expect from businesses

Much is being said these days about ESG criteria, in terms of their value, the importance of their adoption by companies but also the way they are evaluated by investors, stock exchanges and the overall financial system. The issue is no longer theoretical; it has become a key factor in attracting investment capital, in determining corporate creditworthiness and, ultimately, achieving growth.
What are ESG criteria?

ESG stands for Environmental, Social, and Governance. Environmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. Environmental criteria consider how a company performs as a steward of nature. Social criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. Governance deals with a company’s leadership, executive pay, audits, internal controls and shareholder rights.

Investors use ESG information to determine how resilient and prepared a company is to manage changes in the environment in which it operates. Companies need to identify, prioritize and publicize ESG issues that are most relevant to their operation, as well as explain how these issues affect their corporate performance and ability to implement their strategy.

The future of business depends on ESG

The United Nations’ 2030 Agenda and the Paris Agreement have created a regulatory framework at a political level that tackles problems that need to be addressed immediately, such as climate change, huge social inequalities and “irresponsible” entrepreneurship. The economy’s functioning has gained equal weight with that of the protection of the environment and the promotion of society, bringing the environmental, social and corporate governance (ESG) factors to the fore and redefining concepts such as “performance”, “value” and “development”.

Anton Mifsud Bonnici

Anton Mifsud-Bonnici is a Mediterranean EU-based business advocate and ESG master strategist. He is a thought leader on governance issues with extensive multi-stakeholder management and responsible extractive industry standards experience.  He has advised governments and investors over a 25-year period in emerging and developing economies on projects and sites. Early in his career Anton co-authored the 1992 Rio Declaration on Environment and Development. And he saved many lives in conflict and genocide zones in Europe and Africa. At the moment his other non-exec roles include Abkons Consulting and Crystol Energy. Anton is also an unpaid advisor to civil society organisations dedicated to good governance, gender equity and human rights in Mozambique, Sierra Leone, DRC, Bosnia and Yemen.  He is a graduate of the University of Malta and of Columbia University.

Mr. Bonnici will participate in the 2nd Cyprus Forum where he will discuss how ESG factors affect the agenda and actions of senior business leaders.

For the second consecutive year, the Cyprus Forum, which takes place on October 2, 2021, seeks to unite civil society, institutions, academia and the business world.

Bringing together a unique mix of local and foreign leaders from the public and private sectors, the media, academia, entrepreneurs, policy-makers and active citizens, participants in the 2nd Cyprus Forum will discuss, exchange ideas and identify new and creative solutions to key issues of public concern.

For registration click here.

For more information, contact Cyprus Forum:

Tel: (+357) 22 678 670 | e-mail: [email protected] | website: www.cyprusforum.cy