PHITBIT Limited is aware that the funds for this tendered project will need to be raised from external sources. Investors are increasingly savvy and applying non-financial factors as part of their analysis process to identify risks and growth opportunities. The finance director is well aware that adopting a culture of ESG investing and analysis helps deliver performance and creates value to owners and other stakeholders. Some of these benefits may not be integrated into conventional investment appraisal method, such as the Net Present Value approach applied to this new production proposal. You have been tasked to investigate the potential Environmental, Social and Governance (ESG) impact of this project on the aspects of the business and markets, alongside the traditional financial measures applied in this investment appraisal.

(a) Explain EGS investing, and critically discuss how Environmental, Social and Governance (ESG) factors should be addressed, in relation to the proposed new production project.

(b) Critically discuss THREE non-quantifiable potential benefits that could result from PHITBIT Limiteds ESG responsible investing in part (a).