The S in ESG: Elizabeth Chiweshenga (abrdn)

August 10, 2023

S van ESG ESG

Elizabeth Chiweshenga (foto archief abrdn) 980x600.jpg

^{This article was written in Dutch. This article is an English translation.}

By Elizabeth Chiweshenga, Senior Manager Duurzaamheid at abrdn

How do you interpret the S of ESG?

'The S of ESG covers a wide range of topics that can impact a diverse group of stakeholders. This may include the relationship with the local community, supply chain management, data privacy, diversity and inclusion, working conditions, employee health and safety, etc.

Context is essential for a proper assessment of this. Social challenges are often complex and persistent, so constructive dialogue is crucial. Corporate engagement is therefore the core of our approach. It helps us to fully understand social issues, assess the position of our investments in this context and influence positive change where necessary.'

How do you measure or benchmark the S?

'For social research, we often rely on independent sources such as NGOs, trade unions, development organizations and universities. We monitor important KPIs for our investments using our internal analyzes and scores.

Sometimes the progress of a company is relatively easy to assess on the basis of company information. Often a more versatile approach is needed. We then take geographic exposure into account, compare standards and practices of peers and evaluate critical assessments from (among others) third parties. This helps us to assess whether companies take sufficient measures to limit social risks.

We also make our expectations clear through our voting policy and the positions we publish. We review all shareholder resolutions related to social issues and publish our voting decisions on our website.'