The Environmental, Social, and Governance (ESG) criteria are a set of global standards for company operations built to benchmark sustainable investments. The criteria examines the way a firm manages its relationships with all stakeholders, it’s attitude towards environmentally sustainable operations, and company leadership and rights.
We highly advocate investments and business practices in accordance with the ESG criteria. Companies that are able to both adhere to the principles of the criteria and perform well as a business offer a greater value to investors. Adhering to ESG can also be viewed through the lens of risk management as a preemptive policy in the face of financial risk due to environmental or unethical practices.
Unfortunately, while standards in developing countries often reflect many ESG principles through policy and procedure, most emerging market nations fall behind the curve. In many nations the bottom line remains the focus for companies, and stakeholders are narrowly identified as only customers and shareholders. East Mill Capital not only aims to work with companies adhering to ESG criteria, but also works with companies through the compliance process in implementing internal policy and governance supportive of ESG.