Assignment on Sustainable Finance

Running head: SUSTAINABLE FINANCE
Sustainable finance
Name of the Student:
Name of the University:
Author’s Note:

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Table of Contents
Answer to question 1:......................................................................................................................2
Answer to question 2:......................................................................................................................7
Encompassing ESG factor in the valuation process exposes investors to risks:.............................7
Existing ESG issues makes it unsuitable to involve in valuation process:......................................9
Answer to question 3:....................................................................................................................10
Answer to question 4:....................................................................................................................13
Activities of Growthpoint properties:............................................................................................13
Financial model:............................................................................................................................13
Government regulations used in complementing its financial performance:................................14
Metrics used for measuring social and environmental impact:.....................................................15
Actual financial performance of Growthpoint properties:.............................................................16
Answer to question 5:....................................................................................................................16
Operating model of Lok capital:....................................................................................................17
Financial model of Lok capital:.....................................................................................................17
Metrics used to measure social and environmental impact:..........................................................18
Financial performance of funds against benchmark:.....................................................................19
References list:...............................................................................................................................21

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Answer to question 1:
a) Environmental, social and governance (ESG) criteria used by global telecommunications
is environment management system, risk of exposure to electronic magnetics wave,
industrial accidents, products and services and regulation. These are the specific metrics
that are used by global telecommunications based on Sustainability Accountability of
Australian.
The most important social factors for telecom operators were intellectual capital that was
generated from customers, partner relationship, suppliers and regulatory risks. Criteria on
evaluating the social system of telecommunication includes supply chain efficiency, brand value,
innovation capacity, durability, distribution networks, diversification, growth, satisfaction of
customer and service and product quality (Ajffinancial.com 2017).
Housing, safety and environment factors used by telecommunication was identification of
risks related to electronic magnetic waves. This particular level of risk was driven by exposure to
mobile communications. HSE factors are considered as less important for telecom sector
compared to transportation and energy sectors.
Corporate governance and sustainable development are another aspect of ESG. The ESG
criteria in terms of sustainability development of telecommunication involves quality of financial
communication, effectiveness of board, and rights of minority shareholders and separation of
function. Metrics of corporate governance includes objectives and results of sustainable
development, sustainable development information system and services and products with added
value of sustainable development (Volz 2016).

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b) SASB ESG priority analysis of European Telecommunication Network Operators
association:
The investment policy of European network telecommunication network operations
(ETNO) association is governed by commitment to environment, good governance and
society and it is governed by criteria of responsible investment that are what known as ESG
criteria. Environmental and sustainability charter was launched by ETNO and it demonstrate
commitment of member to reduce their carbon footprint (Friede et al. 2016).
Environmental priority of ETNO is to reduce emission of carbon dioxide in the
atmosphere, employing efforts to improve their efficiency of energy. Despite considerable
increase in overall demand of energy resulting from increasing traffic and growing users of
mobile, charters of ETNO has been continuously reducing emission of carbon. ETNO has
employed a sustainable provision of solutions that are based on information and communication
technology while focusing on reducing impacts of their activities on environment. Energy
efficiency and sustainable environment is based on use of intelligently distributing the
temperature and using of renewable energy (Fatemi and Fooladi 2013).
Projects impact on society is considered by charter with a particular focus on social
improvement and development. Some of the issues such as volunteering work action and family
management are dealt by social training action. Objectives of corporate social responsibility is
met by association by integration of environmental, ethical, social, human rights and concerns
for consumers into their close operations.

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A formal corporate governance policy have been issued by charter signatories of ETNO.
Formulation of policies has helped organization in making better decision about long-term health
of organization.
Global E sustainability initiative helps in achieving integrated environmental and social
sustainability and has collaborated with members of ICT that is Information and communication
technology. A holistic view of sustainability has been taken by global e sustainability initiative.
Efforts are taken for supporting and ensuring social and environmental sustainability. Initiatives
are taken in developed and developing nations to respond to climatic issues, e waste
management, energy efficiency and resource (Clarke and Boersma 2016).
c) Listing of ESG priorities by British Telecom:
Goods and services are delivered, made and disposed in an environmentally and socially
manner. Factors relating to environmental impact is measured by organization and the group
continuously strives to reduce the impact of its operation on environment through better
stewardship of products. Environmental impact is measured by the change in environment in
terms of emission of carbon in the atmosphere. Using the criteria for the purpose of making
investment in any organisation has been a relatively recent innovation under the umbrella of
socially responsible investing.
An annual materiality review is undertaken by British Telecom for understanding social
and environmental issues that are of important to stakeholders. Actions and decisions are
influenced by the purpose of organization that helps in delivering social and economic benefits.
Suppliers and chosen and goods and services are delivered, disposed and distributed in a way
that are environmentally and socially responsible. Another priority in maintaining sustainability

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in environment is done by measuring things like energy use of suppliers, labour standards and
environmental impact. British telecom takes measures for enabling consumers to reduce their
carbon emission and its impact on business (btplc.com 2017). Policy of corporate social
responsibility is reviewed annually by British telecom and considering of social, ethical and
environmental matters. Benefits offered from products and services intends overcome social
disadvantage. ESG score of British telecom stood at 74 (Fuerst 2015). ESG recommendation
score was recorded at 1 and this depicted that there exist strong opportunity for investors.
d) Issues reported by non-profit stakeholders:
Non-profit stakeholders are those who does not have any stake in the profit of
organization. Some of non-profit stakeholders are local community, customers, donors and
volunteers. It is required by organizations to communicate about their business performance and
ESG performance in an integrated manner. Performance and issues related to social and
environment factor is required to be explained with reference to strategies and concepts for
explaining the working process of business and how they will succeed. ESG reports resented by
companies often fail to explain how issues of ESG are related to market conditions that drives
strategy of business and whether customers are voicing new priorities and specific preferences.
Sometimes, ESG report is regarded as public relations exercise as positive news are over
emphasized and negative developments are not reflected. Disclosure of data and information on
performance of company tends to be selective (Badi and Pryke 2016). External stakeholders such
as customers, communities and donors might not get real picture of organization’s performance.
e) Variances between ES listed priorities in given case and those listed above: