Question 2

Environmental, Social and Governance (ESG) investing, called to action almost a decade ago, has moved from the sidelines to the forefront of decision-making. ESG considerations are also increasingly being integrated into the charters of growing number of corporations, including their practices and applied due diligence processes when assessing assets acquisition.

Kievon Ltd aims to align the company' operations and acquisitions with this Socially Responsible Investing movement, with a keen awareness of the company's behaviour and decision with respect to ESG. Kievon understands that adopting a culture of responsible investing 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 method).

The CEO has asked you to assist with gaining some inspiration when incorporating potential impact of this project on the Environmental, Social and Governance (ESG) aspects of the business, alongside the traditional financial measures applied in this investment appraisal.

(a) Explain Responsible investing, and critically discuss how Environmental, Social and Governance (ESG) factors are addressed, using example(s) in existing body corporate's publications.

(b) Select and Critically discuss THREE non-quantifiable potential benefits that could result from Kievon Limited's ESG responsible investing initiative in part (a).