Global Inequity — a major hurdle (2/2)

Working off on the last point made in my last post, the ESG framework has three components that need to be given equal focus.

It’s very easy to focus on only one, in this case E (Environment) but it is necessary to remember that the components need to be given equal importance, Social and Governance responsibilities go hand in hand in taking a stand against climate change.

Investors have a large role to play in this. Taking a key point from here, it is beneficial for companies to take up ESG factors seriously.

A fundamental restructuring is required in the school of thought dictating our national, international and industrial policy making. Driving finance and investments to control our economic forces is the need of the hour, and believe me, time is ticking.

David Wood, director of the Initiative for Responsible Investment (IRI) at Harvard’s Kennedy School of Government puts forth quite a compelling situation:

“Wood warned that the shift from coal-fired power plants to wind energy in the United States — a mid-west to Northern mid-west move — has revealed that new jobs are more precarious, not unionized, and often offered on a seasonal basis.” However, workers in the fossil fuel industry have been protected with features like long-term job security and union protection.

With the shift to renewable energy, especially in countries like India which has been touted to be the fourth most attractive renewable energy market (states like Gujarat and Karnataka have very progressive solar energy policies), worker populations need these crucial factors.

Read more: https://www.theasset.com/article-esg/43819/theasset.com