Why ESG?

ESG scoring broadly supports the realization of the Sustainable Development Goals (SDGs) published by the United Nations and their related 2030-2050 targets. For this reason, the basic and sub-metrics of ESG reveal the extent to which companies operate in line with the SDG targets.

Apart from companies, investors, and other stakeholders interest, with the latest legislations companies are started paying more attention to ESG in its activities. Turkey’s signing of the Paris Climate Agreement and adopting the “2053 net zero target” and the fact that the European Union, our most important trade partner, attaches great importance to the 2030 and 2050 targets makes it increasingly necessary for Turkish companies evolve into an ESG-oriented production, export and financing structure.

What are the advantages of ESG Scoring?

The fact that companies operate in a structure that “really” responds to the expectations and demands of their stakeholders on E (environmental), S (social) and G (governance) issues supports the creation of a more sustainable World. Beyond this general economic and social benefit, ESG oriented Companies are considered to have a competitive advantage in terms of risk management and financial performance.

In this context, ESG scoring offers companies a holistic and socially responsible risk management framework. The main financial benefits of ESG-oriented company management are; higher accounting/stock market performance-IPO income and lower borrowing costs.

Who should take advantage of ESG Scoring?

The ESG-oriented management philosophy supports intangible value creation and company reputation. Capital market listed companies are the main beneficiaries of ESG. ESG scoring is also important for privately held companies, business partnerships and large projects.

How should a company correcty establish an ESG Strategy ?

Achieving the expected benefit of ESG requires a long-term and institutional perspective. Good ESG performance is possible with “internalization” of the issue and a determined strategy. The design of the right ESG strategy and its development over time can only be the product of firm work at the company level. In the light of international standards of this design; industry scale and company specific; It should be developed within the framework of socially responsible production, consumption, risk and portfolio management principles.