From the course: Corporate Finance: Environmental, Social, and Governance (ESG)

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Environmental: A corporation's responsibility for the Earth

Environmental: A corporation's responsibility for the Earth

From the course: Corporate Finance: Environmental, Social, and Governance (ESG)

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Environmental: A corporation's responsibility for the Earth

- The E in ESG stands for environmental. The environmental activities that fall under the heading ESG include energy use, carbon footprint, natural resource stewardship, management of dangerous substances, compliance with governmental environmental regulations, and sustainability in resource use. The environmental dimension of ESG is probably the most visible ESG element to the average person. Every day we read news reports about a company reducing its carbon footprint, cutting its energy usage, or increasing the sustainability of its value chain. Societal pressure has caused companies to be open about the amount of their energy that comes from renewable sources. For example, Walmart reported that in 2020, 36% of its worldwide electricity consumed was generated through renewable resources. That's up from 29% the year before in 2019. Even banks are trumpeting their green energy use. Bank of America reported that in 2020,…

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