Member’s Insight
Dr. Zeittey KarmilaKarman Senior Lecturer and Quality Manager, College of Graduate Studies & Associate Researcher Institute of Energy Infrastructure (IEI), UNITEN
Environmental, Social and Governance (ESG)in Energy Activities: Powerful Pair for Sustainable Future
The term "environmental, social, and governance (ESG)" is attributed to a 2004 United Nations (UN) Global Compact report on ESG investment. The UN report “Who Cares Wins”, published in 2004, is widely regarded as the first mainstream mention of ESG in the modern context. This report focused heavily on encouraging all business stakeholders to embrace ESG on a long-term basis. Managers, directors, investors, analysts, and brokers were all addressed in the report. These developments occurred in tandem with an increased international focus on the people, planet, and governance issues. People began to care more about workplace sustainability, respect, and diversity. Moreover, many companies in the energy sector nowadays have shown their interest in pursuing a decarbonized goal in their business activities. This is because energy companies face significant environmental and social challenges such as climate change, air pollution, and natural resource depletion. These companies must disclose their carbon footprint, reduce greenhouse gas emissions, and invest in renewable energy sources to meet ESG criteria. They must also prioritize health and safety measures for their employees and contractors and engage with local communities to mitigate social impacts.
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MSCA 2023 I VOL.5
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