Environment, Social, Governance [ESG]

As Greeta Thunberg arrives in New York for the:

CLIMATE ACTION SUMMIT, 23 SEPTEMBER 2019

... it is interesting to consider not just where 'health' sits within business and commerce, but the themes and issues that it has reached. Now, we are more aware of the dependencies, for example air quality, physical and mental health, but we are still to finish the chapter titled: "The Damage Done".

'Capitalism' remains rapacious in terms of resource use (ironically if the market and prices are cyclical) and we must acknowledge all of economics, from stock exchanges, to cities, to villages in developing countries, but the challenge remains to transform the geometry of our economics to that of a sustainable circle. As per the climate debate, in some instances, we might close certain industries and leave some classes of minerals, elements, fossil fuels in the ground. We should accept that while some economies are more circular than others, sometimes you cannot circle a square?

Below is an investment hierarchy in which I have highlighted health. Education, literacy and environmental awareness are, if not issues (which they are, especially their respective economics) they are much needed individual actions to achieve progress.

The media notes that next month's summit will include 'world leaders'. I wonder how many business leaders will be present? This would be an indicator of corporate social responsibility, looking very positive in the annual report (even if the self-regulation has not yet achieved homeostatis). If you can advise with figures, or if I find the information later next month I will post here.

MSCI ESG Key Issue Hierarchy

3 Pillars	10 Themes	37 ESG Key Issues
Environment	Climate change	Carbon emissions  Product carbon footprint  Financing environmental impact Climate change vulnerability
	Natural resources	Water stress  Biodiversity & land use  Raw material sourcing
	Pollution & waste	Toxic emissions & waste   Electronic waste Packaging  Material & Waste
	Environmental opportunities	Clean tech  Green building   Renewable energy
Social	Human capital	Labor management   Health & safety Human capital development Supply chain labor standards
	Product liability	Product safety & quality  Chemical safety Financial product safety  Privacy & data security  Responsible investment  Health & demographic risk
	Stakeholder opposition	Controversial Sourcing
	Social opportunities	Access to communications  Access to Health care Access to finance   Nutrition & Health
Governance	Corporate governance*	Board* Pay* Ownership* Accounting*
	Corporate behavior	Business ethics Anti-competitive practices Tax transparency Corruption & instability Financial system instability

* Corporate Governance Theme carries weight in the ESG Rating model for all companies. In 2018, we introduce subscores for each of the four underlying issues: Board, Pay, Ownership, and Accounting. https://www.msci.com/documents/10199/123a2b2b-1395-4aa2-a121-ea14de6d708a

My source (MSCI ESG Key Issue Hierarchy p.27):

Norrington, J. (2019) Future Proof Investments, Investors Chronicle, 18-25 April. pp.24-28.