CSEET · Economic and Business Environment · Environmental Governance
In the ESG framework used to assess a company's sustainability performance, which of the following issues falls under the 'E' (Environmental) pillar?
Greenhouse gas emissions and energy efficiency fall under the Environmental pillar of ESG, because this pillar measures a company's impact on nature through emissions, energy, water and waste. Board diversity and audit independence are governance matters, and worker safety is a social matter.
- AGender diversity on the board of directors
- BGreenhouse gas emissions and energy efficiency of operationsCorrect
- CIndependence of the audit committee
- DHealth and safety of workers at the factory
Explanation
The Environmental pillar covers a firm's impact on nature, such as emissions, energy use, waste and water. Board diversity and audit committee independence belong to Governance, while worker health and safety belongs to the Social pillar.
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