Carbon emissions from oil refineries

Executive pay structure

Supply chain labour violations

Cybersecurity attacks

Oversupply of eligible projects

Too much external verification

Excess regulation in global markets

Funds not used as promised but no legal default triggered

Bias in credit scoring models

More efficient loan approvals

High default rates in developing economies

Lower operating costs

Gradual sea-level rise

Slow changes in rainfall patterns

Increased frequency of hurricanes

Long-term drought

Pursuing rapid expansion while ignoring worker safety

Outsourcing all compliance to external consultants

Engaging with community stakeholders before project approval

Maximizing profits regardless of environmental harm

Environmental

Governance

Financial

Social

Consequentialism

Deontology

Profit-maximisation

Utilitarianism

Annual board self-assessments

Diverse board membership with stakeholder representation

Independent directors making up less than 30%

Transparent ESG-linked compensation schemes

Only relevant when government mandates exist

As integral to the interests of all stakeholders

As irrelevant to long-term value

Secondary to shareholder profits

Weak penalties for borrowers failing to meet ESG targets

Excess liquidity in ESG credit markets

Lack of demand from institutional investors

Too many standardized metrics