1. What is Environmental, Social, and Governance (ESG)?
ESG: [Environmental, Social, Governance] Framework of the Association for Supporting the SDGs for the UN
Environment, social, and governance, previously considered non-financial elements, have now emerged as core values of companies, major financial institutions, and shareholders around the world. They are considered deeply in core management strategies that companies must implement for sustainable management and investment. Particularly, since the outbreak of COVID-19 in 2019, “eco-friendly,” “social value,” and “ethical behavior” have become the main policies of governments and parliaments. ESG has become a significant element that consumers, businesses, and civil societies look for in a product, and the demand for ESG management is ever-growing.
ESG finance is an investment method that shareholders and institutional investors consider with the company’s financial factors in terms of “sustainable investment” when making investment decisions in a company, reflecting social and ethical values and eco-friendly sustainability. Unlike the traditional method of judging only the financial performance of companies in the EU and major countries such as the U.S. from 2021, it will be evaluated by reflecting ESG that affects corporate value and sustainability from a long-term perspective. The way companies invest in ESG performance can drive long-term returns from investors, while corporate behavior can have a significant impact on society.
Along with the UN SDGs, the social responsibility of companies and investors has become important, and many financial institutions around the world are using ESG evaluation information. Starting with the UK (2000), many countries including Sweden, Germany, Canada, Belgium, France, and the Netherlands have introduced ESG information disclosure obligations with pension funds at the center, and New York Stock Exchange (NYSE) is also pushing for disclosure duties. The UN has recommended investment considering ESG issues since 2006.
2. ESG bonds and disclosure standards support
The Association for Supporting the SDGs for the UN (ASD) is an observer organization to the ICMA Green and Social Bond Principles and also created an Asian Plastic Working Group with the Sustainability Accounting Standards Board (SASB) which is the international ESG standards organization and we are promoting research projects regarding ESG Environmental standards of the Asia-Pacific region.
ASD conducts ‘Second-Party Opinion and SDGs mapping and SRC (Statement list of Recommendation ESG Global Corporate Excellence through SDGs)’ on corporate-issued post reporting of Green Bonds (GB) and Social Bonds (SB) in accordance with Recommendations for Sustainable Finance Taxonomies.
In particular, the SRC strongly advises companies on ESG financing and investment.
The association has also proposed Asia’s First-ever ‘ESG Quantitative Easing (ESG QE)’ and advises the revitalization of green bonds, social bonds, and MBS, thereby boosting the economy, increasing job opportunities, climate response, carbon reduction, and energy conversion.
After the COVID-19 Pandemic, the association proposes an ESG QE (Quantitative Easing) for economic stimulus, climate change action, and reduction of carbon emission. This policy will further contribute to the invigoration of ESG bonds.
3. Provision of professional advice and global certifications and guidelines for the analysis and evaluation of corporate ESG management
1. SDGBI: [SDGBI (UN Sustainable Development Goals Business Index)]
Provision of professional advice and global certifications and guidelines for the analysis and evaluation of corporate ESG management
Established UN SDGs Business Index (SDGBI), a business index that assists 2500 major corporations in the analysis and consultation based on the SDGs
■ Submitted as an official written statement(E/2019/NGO/91) at the High-Level Segment(HLS) of the 2019 High-Level Political Forum(HLPF)
■ Announced every October since 2016, becoming a standard for investment and implementation of UNSDGs and a standard for sustainability management among major global companies.
■ Analysis of 12 criteria and 48 indicators in 4 sectors (out of 100 points) including Society, Environment, Economy and Policy
2. GRP [GRP : Guidelines for Reducing Plastic Waste & Sustainable Ocean and Climate Action Acceleration]
■ Annually announced to proliferate more than 2,000 global enterprises’ activities regarding the reduction of plastic-and-petroleum-related products and sustainable ocean?climate action acceleration.
■ GRP (Guidelines for Reducing Plastic Waste & Sustainable Ocean and Climate Action Acceleration) signifies global environmental guidelines and international environmental standards.
■ GRP utilizes a ‘4 rating system’ (AAA, AA+, AA, AA-) and associated enterprises in the system obtain an international environment-certification.
3. [‘Global Sustainable Leaders 100’ & ‘Global Sustainable Brands 100’]
■ Once selected as the official Exhibition Organizer for the ‘UN High-Level Political Forum'(UN HLPF 2019), ASD announced at the UN headquarters in New York in 2019, ASD announced ‘Global Sustainable Leaders 100’ to the world under the same theme.
■ Announced in celebration of receiving H.E. Tijjani Muhammad-Bande’s (President of the UN General Assembly representing 193 UN member states) official letter encouraging the public and private sector to implement the SDGs and actively respond to Covid-19.
■ From 2020 announcement, exemplary companies and consumer-recommended brands have also been announced.
■ Based on 10 standards and 43 indicators, selects 100 out of 3000 leading companies and 2000 leading leaders, respectively.
4. Introducing exemplary ESG models to major UN committees through the submission of UN official written statements are as following:
◇ 2015 ECOSOC High-Level Segment – 2015.7.
◇ Commission on the Status of Women Sixtieth session – 2016.4.
◇ ECOSOC High-Level Segment Written Statements – 2016.7. 2016
◇ The 55th Session of the Commission for Social Development – 2017.2.
◇ 16th Session of the Committee of Experts on Public Administration – 2017.4.
◇ The 56th Session of the Commission for Social Development – 2018.2.
◇ The 51st Session of the Commission on Population and Development – 2018.4.
◇ 2018 ECOSOC High-Level Segment – 2018.7.
◇ The 52st Session of the Commission on Population and Development – 2019.4.
◇ 2019 ECOSOC High-Level Segment – 2019.7.
◇ Commission on the Status of Women Sixty-fourth session – 2020.3.
◇ The 53rd Session of the Commission on Population and Development – 2020.4
◇ The 59th Session of the Commission for Social Development – 2021.2
◇ The 54st Session of the Commission on Population and Development – 2021.4.
5. ESG&SDGs Business Index-SDGBI
The Association for Supporting the SDGs for the UN is an Observer of the Green Bond Principles (GBP) and Social Bond Principles (SBP) of the ICMA (International Capital Market Association). Along with this, ASD has formed an Asian plastics project working group with the Sustainability Accounting Standards Board (SASB) – an international ESG sustainability accounting standards development organization – performing R&D for ESG environmental standards in the Asia Pacific region.
Based on these international rights and roles, the association partners with various ESG organizations inside and outside of the country to support ?Second Party Opinion ? Guideline ?Verification ? Globally Linked ? External Linked ? ESG Education. In particular, the association has selected and announced a global ESG index, SDGBI.
Furthermore, we provide a transparent Sustainable Management Index (SDGBI) for companies to evaluate and utilize voluntarily.
Announced every October since 2016, becoming a standard for investment and implementation of UNSDGs and a standard for sustainability management among major global companies. GRP (Guidelines for reducing plastic waste, based on SDGBI, provides guidelines for global enterprises’ plastic reduction and activities of climate change adaption.
The Sustainable Development Goals Business Index (SDGBI) is the world’s first Index ranked based on the review of SDGs-based. Corporate Sustainability Analysis Index for global corporations submitted as a written statement (E/2019/NGO/91) at the High-Level Segment (HLS) of the 2019 High-Level Political Forum (HLPF).
All resources are taken from the UN SDGs Association.
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