Question 1 (10 marks) Environment, social and governance (ESG) risk has become an important consideration for companies around the world. Sustainalytics, a leading independent ESG ratings firm supports investors around the world with the ESG risk scores of more than 12,000 companies encompassing most major global indices. The ESG scores assess the organisations' enterprise value at risk arising from environment, social and governance factors. Table 1 provides the ESG risk scores of four companies listed in Australian Securities Exchange (ASX): CSL Limited (CSL), BHP Group (BHP), Woodside Petroleum Ltd (WPL) and APA Group (APA). Table 1: ESG scores Risk score types CSL BHP WPL APA ESG risk score 24.0 31.0 24.0 31.0 Environmental risk score 0.0 17.6 13.5 12.0 Social risk score 17.0 8.9 4.1 12.6 Governance risk score 7.4 4.8 5.9 6.2 Controversy level 2 4 2 1 Source: Yahoo Finance Requirements (a) Evaluate the companies in terms of their ESG risks (5 marks) (b) Suggest on the strategies or actions to manage these risks. (5 marks) Question 1 (10 marks) Environment, social and governance (ESG) risk has become an important consideration for companies around the world. Sustainalytics, a leading independent ESG ratings firm supports investors around the world with the ESG risk scores of more than 12,000 companies encompassing most major global indices. The ESG scores assess the organisations' enterprise value at risk arising from environment, social and governance factors. Table 1 provides the ESG risk scores of four companies listed in Australian Securities Exchange (ASX): CSL Limited (CSL), BHP Group (BHP), Woodside Petroleum Ltd (WPL) and APA Group (APA). Table 1: ESG scores Risk score types CSL BHP WPL APA ESG risk score 24.0 31.0 24.0 31.0 Environmental risk score 0.0 17.6 13.5 12.0 Social risk score 17.0 8.9 4.1 12.6 Governance risk score 7.4 4.8 5.9 6.2 Controversy level 2 4 2 1 Source: Yahoo Finance Requirements (a) Evaluate the companies in terms of their ESG risks (5 marks) (b) Suggest on the strategies or actions to manage these risks