These questions are a part of the National Guidelines on Social, Environmental and Economic Responsibilities for Business. They provide the bedrock on which responsible business in Indian companies are laid. Hence to have a yes to any of these questions or a company policy on these aspects strengthens the #ESG aspects of the company.
This particular metric question is inspired by NVG Principle 6: Business should respect, protect, and make efforts to restore the environment.
The principle recognizes that environmental responsibility is a prerequisite for sustainable economic growth and for the well being of society.
The principle emphasizes that environmental issues are interconnected at the local, regional and global levels which makes it imperative for businesses to address issues such as global warming, biodiversity conservation and climate change in a comprehensive and systematic manner.
The principle encourages businesses to understand and be accountable for direct and indirect environmental impacts of their operations, products and services and to strive to make them more environment friendly.
Source: Indian Ministry of Corporate Affairs
Does the company identify potential environmental risks? The answer to this question may be found in the company's Business Responsibility Report.
Note: The Business Responsibility Report may be found within the company's Annual Report and/or Sustainability Report.
If the company reports directly to the NVG principles, the answer can be found under Principle 6 or Principle 6.3.
If the company does not report directly to the NVG principles, search in the company's reporting for identified environmental risks. When looking for the answer in the source, key words to search for include:
- Principle 6
- Risk
- Identify
- Identification
Note: A general risk identification mechanism is not sufficient to reward a "Yes", the company should explicitly state that it identifies environmental risks.
If the company does identify potential environmental risks, select the answer Yes and cite the report where you found this information as a source.
If details are provided about the environmental risk identification strategies or mechanisms, add these to the comments.
If the company does not identify potential environmental risks, select the answer No and cite the relevant report as a source.
The company may report in fiscal years - in this case, please use the latest year which is cited.
- A report for 2016/17 should be used for adding data for the year 2017