Podcast
Questions and Answers
What is the primary purpose of the United Nations Global Compact (UNGC)?
What is the primary purpose of the United Nations Global Compact (UNGC)?
Which of the following areas does the UNGC focus on?
Which of the following areas does the UNGC focus on?
What initiative aims to incorporate ESG factors into investment decision-making processes?
What initiative aims to incorporate ESG factors into investment decision-making processes?
When was the United Nations Global Compact (UNGC) launched?
When was the United Nations Global Compact (UNGC) launched?
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The UN Principles for Responsible Investment (PRI) was launched in which year?
The UN Principles for Responsible Investment (PRI) was launched in which year?
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The PRI supports which of the following goals?
The PRI supports which of the following goals?
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Which document does not serve as a basis for the principles of the UNGC?
Which document does not serve as a basis for the principles of the UNGC?
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Which aspect is NOT directly addressed by the UN Principles for Responsible Investment?
Which aspect is NOT directly addressed by the UN Principles for Responsible Investment?
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What is the primary aim of the Paris Agreement?
What is the primary aim of the Paris Agreement?
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Which entities are primarily responsible for signing the Principles for Responsible Investment (PRI)?
Which entities are primarily responsible for signing the Principles for Responsible Investment (PRI)?
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How does the PRI evaluate the performance of its signatories?
How does the PRI evaluate the performance of its signatories?
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What role does the PRI play in the investment industry?
What role does the PRI play in the investment industry?
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Which aspect of ESG does the Paris Agreement primarily address?
Which aspect of ESG does the Paris Agreement primarily address?
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What is a social aspect addressed by the Paris Agreement?
What is a social aspect addressed by the Paris Agreement?
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What type of environmental impact does the Paris Agreement aim to mitigate?
What type of environmental impact does the Paris Agreement aim to mitigate?
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What does the PRI encourage investors to consider in their decision-making processes?
What does the PRI encourage investors to consider in their decision-making processes?
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What is the primary goal of ESG reporting regulations?
What is the primary goal of ESG reporting regulations?
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Which institution in Bahrain is responsible for regulating the environmental legislative system?
Which institution in Bahrain is responsible for regulating the environmental legislative system?
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What significant international agreement has Bahrain ratified related to environmental issues?
What significant international agreement has Bahrain ratified related to environmental issues?
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What role does the Central Bank of Bahrain play in the context of ESG?
What role does the Central Bank of Bahrain play in the context of ESG?
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The Supreme Council for Women focuses primarily on which of the following?
The Supreme Council for Women focuses primarily on which of the following?
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Which regulatory body works to implement ESG reporting standards in Bahrain?
Which regulatory body works to implement ESG reporting standards in Bahrain?
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Why is it beneficial for companies to report on key ESG information?
Why is it beneficial for companies to report on key ESG information?
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What common misconception may arise regarding the role of the Supreme Council for Environment?
What common misconception may arise regarding the role of the Supreme Council for Environment?
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Study Notes
ESG Agreements and Regulations
- ESG stands for Environmental, Social, and Governance
- International, regional, and local agreements and regulations related to ESG are a key topic in the introduction to ESG.
Recap of Previous Sessions
- Key topics from previous sessions included understanding earth systems, climate change and pollution, social aspects of ESG, and the role of governance in sustainability.
- Previous work covered significant periods like the 1950s-80s, 1990s, 2000s, and 2010s, with respective developments in the discourse of ESG.
History of ESG
- 1950s-80s: Economists began discussions on business ethics and social responsibility.
- 1960s: Social movements brought social issues into corporate considerations.
- 1971: The first socially responsible investment fund was created.
- 1990s: The UN Environment Program (UNEP) and COP conferences emerged, with emphasis on sustainable economies and lowering GHG emissions.
2000s
- 2004: The UN coined the term ESG in its "Who Cares Wins" report.
- The report along with "Principles for Responsible Investment (PRI)" were launched.
- Corporate scandals brought about the need for accountability and transparency.
2010s
- 2011: The Sustainable Accounting Standards Board (SASB) was founded.
- 2015: The Taskforce on Climate-Related Financial Disclosures (TCFD) came into existence.
- 2016: The Global Reporting Initiative (GRI) standards became important reporting frameworks for ESG.
Present
- ESG is now mainstream in business strategy.
- Investing and reporting are important topics, moving beyond just environmental sustainability.
- Expectations of companies and their commitments have increased.
The United Nations Global Compact (UNGC)
- A voluntary initiative launched by the UN in 2000.
- Encourages businesses and organizations to adopt sustainable and socially responsible policies.
- Based on ten principles covering human rights, labor, environment, and anti-corruption.
UN Principles for Responsible Investment (PRI)
- A global initiative encouraging investors to consider ESG factors in decision-making processes and ownership practices.
- Launched in 2006, in partnership with the UNEP Finance Initiative and UN Global Compact.
- PRI emphasizes the importance of ESG considerations in investment practices.
- Objectives include promoting sustainable investment, aligning investment with societal goals, and disclosing ESG issues.
Signatories
- PRI signatories include pension funds, sovereign wealth funds, insurance companies, asset managers, and investment consultants.
Reporting and Transparency
- PRI requires signatories to report annually on their progress towards implementing the principles.
- Reporting frameworks include indicators and metrics for ESG factors, active ownership, and collaboration practices.
- The PRI contributes to the mainstreaming of responsible investment and awareness of ESG factor importance in decision-making.
The Paris Agreement
- A landmark international treaty adopted in 2015 under the UN Framework Convention on Climate Change.
- Aims to limit global warming to well below 2 degrees Celsius above pre-industrial levels and pursue efforts to limit the increase to 1.5 degrees Celsius.
- The Paris Agreement has significant implications for investment decisions and capital allocation because investors increasingly consider climate-related risks and opportunities.
Paris Agreement Outcomes
- The Paris Agreement sets a goal to limit global warming.
- Countries submit Nationally Determined Contributions (NDCs).
- Regular global stock takes assess collective progress.
- Principles of transparency and accountability enable reporting and progress towards goals.
- It emphasizes financial and technological support for developing countries for mitigation and adaptation of climate change.
- It acknowledges the importance of adaptation to climate impacts on vulnerable populations.
- Loss and damage due to climate change is addressed, helping vulnerable countries facing unavoidable losses.
COP28
- The COP28 UN Climate Change Conference in Dubai was the largest of its kind.
- More than 150 Heads of State and Government from various national delegations, alongside many others, attended the conference.
ESG in GCC (UAE)
- The UAE is establishing itself as a global hub for sustainable finance.
- Projects such as Masdar City focus on renewable energy.
- The UAE has implemented ESG reporting requirements.
- The country is working towards the UN Sustainable Development Goals (SDGs).
ESG in Bahrain
- Bahrain's Economic Vision 2030 emphasizes sustainability and economic diversification.
- ESG reporting guidelines have been introduced for listed companies.
- Bahrain focuses on renewable energy, social welfare, and sustainable development.
Importance of ESG Reporting
- Regulators aim to enhance the availability and reliability of ESG information for listed companies.
- Transparent reporting for ESG factors aligns companies with local, regional, and international regulations.
- This enables anticipating future regulations.
The Supreme Council for Environment
- The Supreme Council for Environment regulates the environmental legislative system.
- The council works to protect the environment.
- It strengthens national efforts to protect the environment, natural resources, and sustainable development.
The Supreme Council for Women
- A national advisory institution monitoring Bahraini women's advancement.
- It drafts policies covering women's roles in public life.
Central Bank of Bahrain (CBB)
- The CBB plays a crucial role in regulating and supervising financial activities.
- It works towards the stability and development of the country's economy.
Bahrain Bourse's ESG Reporting Guide
- The Bahrain Bourse has established an ESG reporting guide.
Self-Study
- Students should research international agreements and regulations related to ESG.
Montreal Protocol
- An international treaty aimed at protecting the ozone layer.
- The treaty works to phase out the use of substances that deplete the ozone layer.
United Nations Framework Convention on Climate Change (UNFCCC)
- A treaty established to address climate change and its impacts.
- It sets the stage for international cooperation.
- Supports global efforts to combat climate change and adverse effects.
Kyoto Protocol
- A treaty that targets greenhouse gas emissions reduction.
- Ensures emission reduction targets for industrialized countries.
Stockholm Convention
- A treaty for protecting human health from persistent organic pollutants (POPs).
- Aims at protecting the environment through reducing production, usage and release of POPs.
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Description
This quiz explores essential agreements and regulations related to Environmental, Social, and Governance (ESG) criteria. It covers the historical context of ESG from the 1950s to the 2000s, focusing on the evolution of business ethics and social responsibility. Test your knowledge on key milestones in the ESG landscape!
