. 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%.

Social factors have

too many established global metrics and face redundancy in reporting.

Social factors are

the primary focus of ESG, with less attention given to environmental and

governance factors.

Correct — social

indicators such as employee wellbeing or community impact are often harder to

quantify consistently across firms.

There is less

quantitative data available for social factors, making them harder to

benchmark.

Social indicators are

fully standardised across global ESG reporting frameworks.

The legal permissions

a company must secure before launching any social initiative.

A formal document

that demonstrates a company's compliance with labour laws.

The informal

acceptance by society or local communities that allows a company to conduct its

business.

A government licence

issued for environmentally responsible operations.

A certification

companies receive after passing a human rights audit.

Increased capital

expenditures due to investment in renewable energy.

Lower revenue from

selling green bonds.

Increased cost of

debt financing due to poor social and governance practices.

Higher returns from

higher shareholder activism.

Reduced energy

consumption through efficiency improvements.