Abstract
This contribution deals with the construction of environmental indicators, serving investors for the assessment of complex performance of companies in accordance with social and corporate governance indicators, the so-called ESG performance indicators. The research project “Construction of Methods for Multifactor Assessment of Company Complex Performance in Selected Sectors”, solved by the team of authors has been introduced. In recent years, investment managers have preferred the importance of ESG indicators showing long-term sustainable performance of those companies in which they have invested their financial resources. The objective of presented contribution is the proposal of environmental indicators, i.e. key ESG performance indicators. Environmental indicators are used not only for decision-making, but also for determination of sustainable value. A number of successive steps have been taken to construct environmental indicators and a combination of various statistical methods has been employed. An empirical analysis of environmental performance indicators for the companies operating in the processing industry according to CZ-NACE has been carried out on the basis of the analysis of sources, suggested by international organisations and voluntary environmental instruments. Environmental performance indicators, facilitating investors to decide on their investment activities and forming the part of key ESG-performance indicators, represent expected results of the empirical research.
Highlights
In recent years, investment managers have preferred the importance of ESG indicators showing long-term performance of those companies in which they have invested their financial resources
The project holder – Faculty of Business and Management, Brno University of Technology (FBM BUT) - is involved in ESG indicators in the processing sector in the Czech Republic within the framework of the Project No P403/11/2085 “Construction of Methods for Multifactor Assessment of Company Complex Performance in Selected Sectors” funded by the Grant Agency of the Czech Republic (GACR)
Key performance indicators can help companies to plan and manage their environmental priorities, in particular, when the indicators are focused on the core business strategy, by means of operational plans, which include performance targets
Summary
Investment managers have preferred the importance of ESG indicators showing long-term performance of those companies in which they have invested their financial resources. Surveys indicate that investors are more and more convinced that ESG integration into their investment decisions maximizes their long-term interest and that good corporate governance and sustainability contribute to creation of long-term value for shareholders. The project holder – Faculty of Business and Management, Brno University of Technology (FBM BUT) - is involved in ESG indicators in the processing sector in the Czech Republic within the framework of the Project No P403/11/2085 “Construction of Methods for Multifactor Assessment of Company Complex Performance in Selected Sectors” funded by the Grant Agency of the Czech Republic (GACR). The objective of presented contribution is to propose a method of selection of environmental performance indicators at the corporate level, supporting decision-making of investors and being the part of ESG indicators and Integrated Reporting. Individual stages of selection of indicators, including description of applied methods, have been defined in the methodology
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