Analysis of the company’s ESG rating

Abstract

Modern global transformations in the economy require a review of approaches to assessing the company's investment attractiveness.Prospective investors increasingly use non-financial indicators as an important component of management decision-making.This is due to the aggravation of global problems, climate change and frequent scandals caused by poor corporate governance, the growing influence of business on the social sphere.One of the modern approaches to the analysis of investment attractiveness is the analysis of the company's ESG rating.ESG – the rating contains three components.E - environmental, includes a number of measures to reduce emissions of pollutants and waste, prevent the depletion of natural resources, including water, reduce the area of ​​forests, as well as the use of renewable resources and their recycling. S - social , consists in supporting the professional education of employees, reducing staff turnover, health care at the enterprise, the presence of a "social package", a culture of "zero injuries", exclusion of the use of child labor, gender equality, relations with consumers and local  communities. G – governance: transparency of information disclosure, consideration of the interests of all shareholders, exclusion of unreasonably high remuneration for top managers and corruption scandals, availability of a long-term company strategy.  ESG information plays an increasing role in the investment decision-making process because these factors help to reduce the risks of losses.To obtain this information, investors usually use data provided by companies in the form of environmental reports, reports on corporate governance and social responsibility or sustainable development, integrated reports.External sources of information are also used, such as press releases and analytical data on company activity obtained from brokers, investment funds and consulting companies.