ICAEW SE · Chapter 4 · Question 12 of 18
A company tracks three measures: (1) water consumption, (2) employee injury rates and (3) the proportion of independent non-executive directors on the board. How would these be classified under ESG?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) (1) Environmental; (2) Social; (3) Governance
Explanation
Water use is an environmental measure, employee health and safety is a social measure, and board independence is a governance measure. ESG factors are commonly used by investors and others to assess how a company manages sustainability-related matters.
More Sustainability in business MCQs
- Q14Which of the following is the clearest example of greenwashing?
- Q15A company has made real progress in reducing its emissions but decides to say nothing about it publicly because it fears criticism if it…
- Q16A company reported total greenhouse gas emissions of 18,400 tonnes CO2e for the year and revenue of £230 million. What is its emissions…
- Q17An oil company owns reserves that it may never be able to extract and sell profitably because of tighter climate regulation and falling…
- Q18A company set a target to reduce its emissions by 42% from a baseline of 50,000 tonnes CO2e. Its emissions for the current year are 38,500…