Sustainable Finance: ESG Priorities for Telecommunications, Soft Commodities, Green Real Estate, and Impact Investing

Sustainable Finance

Table of Contents
1. Case Study.........................................................................................................................................2
a. Industry overview of ESG-priorities for global telecommunications based on the SASB standard
...........................................................................................................................................................2
b. The SASB ESG-priority analysis...................................................................................................2
c. Listing of the ESG-priorities as stated by British Telecom OR France Telecom...........................3
d. Issues which are being reported by non-profit stakeholders..........................................................4
e. Variances between the ESG-priorities...........................................................................................5
f. Decision making.............................................................................................................................5
g. Recommendation...........................................................................................................................6
2. Argue against the use of ESG to value companies.............................................................................6
3. Sustainable soft commodities............................................................................................................8
The key ESG-priorities......................................................................................................................8
Challenges to implementing ESG-priorities......................................................................................9
4. Green Real Estate Investment Trusts...............................................................................................10
Activity............................................................................................................................................10
Financing Model..............................................................................................................................10
Government Programs uses to complement the financial performance...........................................11
Metrics used to measure environmental impact...............................................................................11
Impact of environmental criteria on the financial performance.......................................................11
Actual financial performance of the REIT.......................................................................................12
5. Impact Investing..............................................................................................................................12
Operating model..............................................................................................................................12
Financial model...............................................................................................................................13
Metrics used to measure social impact............................................................................................13
Financial performance.....................................................................................................................13
References...........................................................................................................................................15
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1. Case Study
a. Industry overview of ESG-priorities for global telecommunications based on the
SASB standard
The telecommunication business consists of two main sections that are wireless and wireline.
The wireless section assists in coordinating the correspondences through the network based
on radio cellular and also make connections between the transmission and exchanging offices
(Hioki, 2007). The wireless section provides long and short distance voice communication
services with the help of the public switched telephone network. Additionally, the wireline
transporters offer TV, broadband web and voice over web convention phone. The increase in
the need and use of the information has imposed a significant impact on the business because
of the development in tablets and cell phones.
The metrics used for measuring the ESG priorities are as follows:
 Operational environment footprint: The total energy amount that consumes cellular
electricity and fixed networks.
 Data privacy: The collection of data relates to policies and practices discussions,
usage of information, customer retention and other information (Rooney, 2006).
 Data security: The total number of breaches and security data percentage that
involves the identification information of the customers.
 Systematic risk management: The management of disruptions of technology is
important consisting of interruption duration and interruption frequency.
 Management of the end products: It consists of the materials recovery through
recycled, landfill and reused.
 Competitive behaviour: Legal and regulatory settlement amounts and fines
associated with anti-competitive practices (Wells, 2013).
b. The SASB ESG-priority analysis
The European Telecommunications Network Operators' Association produces sustainability
and environment charter which shows the commitment of the members for decreasing the
carbon footprint. The organization measures the energy consumption of the data centres and
networks and the utilization of renewable energy. The corporate social responsibility
contributes to making sustainable development through an effective management of the
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organization's social, economic and social impacts (Etno, 2018). The organization has an
appropriate relationship with the shareholders, governments, customers and employees. The
management also focuses on business ethics and principles, human rights, employee
relations, community investment, environmental management and working environment. The
organization provides all the information regarding the economic, social and environmental
impacts of the products and services.
The organization has achieved full compliance with all the legal rules and policies. The
efficient management of energy use, resources, waste, eliminating hazardous materials,
environmentally products, examination of labour conditions and human rights. The
organization provides economic, social and environmental information to all the stakeholders
(Naumann, 2012). The organization has maintained cooperation with civil society, industry
partners, international organizations, customers and governments. The corporate governance
structure is being developed for carrying out the business operations in an appropriate
manner. The management also creates a working environment that encourages professional
development, work-life balance, health and safety, diversity and highly productive and
motivated workforce. The privacy and security factors are also taken into account which is
being dealt with innovative ideas in order to satisfy the needs of the customers (Peng., 2013).
c. Listing of the ESG-priorities as stated by British Telecom OR France Telecom
The ECG factors need to assess and examine in order to engage in a more holistic and
complementary approach to the investment analysis. The investors can get information from
the reports published by the organization. The organization is the part of the United Nations
in order to support the responsible investment (BT, 2018). The principle permits the investors
in incorporating the environmental, social and governance considerations into the decision
making ownership priorities and investment analysis. The organizations need to provide
significant information to the investors on the basis of which they can make decisions. The
British Telecom has also taken into account the environmental factors, social factors and
governance factors for ensuring smooth functioning of the business operations.
The ESG priorities stated by British Telecom are as follows:
Environmental factors
 Carbon emissions and climate change
 Water/air pollution
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