To replace traditional banks in SME

lending.

To support local social enterprises that

generate social and environmental impact.

To provide grants to local non-profit

organisations.

To invest only in environmentally focused

start-ups.

To maximise short-term financial returns

for private investors.

The preference for investing only in

companies producing renewable energy technologies.

The desire to completely avoid all exposure

to controversial industries, such as fossil fuels or tobacco.

The increasing evidence that companies with

high ESG ratings outperform their peers financially over the long term.

The belief that focusing on specific

sectors or industries based on environmental impact will lead to greater

short-term profits.

The complexity of measuring non-financial

performance, which makes it easier to exclude industries based on ESG criteria

alone.

 Lower regulatory compliance costs due to

minimal reporting requirements.

 Increased profitability due to lower labour

costs.

Improved employee retention and workforce

morale.

Reduced access to capital markets and credit

facilities.

Stronger relationships with socially

conscious investors.

. ESG integration.

Thematic investing.

Best-in-class investing.

Norms-based

screening.

Impact investing.

. A company invests in renewable energy but

fails to report its water usage.

A company increases employee benefits while

reporting lower environmental emissions.

A company adopts a comprehensive governance

framework but fails to disclose CEO compensation.

. A company makes exaggerated claims about

its diversity and inclusion efforts without meaningful action.

A company falsely claims it has reduced carbon emissions by 50%.