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impact on the environment through the implemen- ce tend to exhibit better financial performance
tation of sustainable practices. over the long term. By integrating ESG factors
Social: this category addresses the Company’s into decision-making, Companies can identify
social impact on society and local communities, opportunities for innovation, cost savings, and
including issues related to human rights, diversity improved operational efficiency. ESG consi-
and inclusion, employee health and safety, supplier derations can enhance a Company’s ability to
and employee relations. attract investors, access capital, and build a
sustainable business model.
In recent years, the achievement • Stakeholder expectations: Customers, emplo-
of ESG objectives implies a yees, investors, and other stakeholders incre-
asingly expect Companies to act responsibly
“fundamental change in and address environmental and social con-
the execution of project and cerns. By considering ESG factors, Compa-
nies can align their practices with stakeholder
construction activities expectations, enhance brand reputation, and
build stronger relationships with customers
Companies that focus on social aspect seek to be and employees. This can lead to increased
accountable to their employees, consumers, the loyalty, trust, and market share.
local communities and society as a whole. • Regulatory requirements: Governments and
Governance: this category covers the corporate Regulatory Bodies are increasingly implemen-
governance structure and how the business is ma- ting ESG-related regulations and standards.
naged and controlled. It includes aspects such as Companies that fail to consider ESG factors
transparency, ethics, independence of the board of may face legal and compliance risks, as well
directors, management of conflicts of interest, ac- as potential reputational damage. By staying
curacy of financial reporting and compliance with ahead of regulatory trends, Companies can
laws and regulations. Good corporate governance ensure compliance and avoid penalties or
practices are essential to ensure integrity and ac- other negative consequences.
countability in the business. • Long-term sustainability: ESG factors are es-
There are several reasons why it is important to sential for ensuring the long-term sustainabili-
consider ESG factors in decision-making proces- ty of businesses and Society as a whole. By
ses. Here are some of the key reasons: addressing environmental challenges, such as
• Risk management: ESG factors can help iden- climate change and resource depletion, Com-
tify and manage various risks that can impact panies can contribute to a more sustainable
a Company’s performance and long-term su- future. By promoting social equity, diversity,
stainability. Environmental risks, such as cli- and inclusion, Companies can foster a fai-
mate change or resource scarcity, can pose rer and more inclusive Society. By practicing
operational and regulatory challenges. Social good governance, Companies can enhance
risks, such as labor practices or community transparency, accountability, and ethical be-
relations, can affect a Company’s reputation havior.
and social license to operate. Governance
risks, such as board independence or ethical In summary, considering ESG factors is important
practices, can impact investor confidence. for effective risk management, financial performan-
Considering ESG factors allows Companies to ce, meeting stakeholder expectations, complian-
proactively address and mitigate these risks. ce with regulations and contribution to long-term
• Financial performance: Research has shown sustainability. It helps Companies to navigate the
that Companies with strong ESG performan- complex challenges of our time, foster resilience,

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