A reminder to retail investors to read those sustainability reports

THE growing importance of environmental, social and governance (ESG) considerations requires investors to understand relatively new terms such as decarbonisation, net zero targets and greenwashing.

Underlying the use of these terms is a warning from scientists that swift and drastic action is necessary to avert irrevocable damage to the planet caused by rising greenhouse gas (GHG) emissions.

These emissions, which trap heat in our atmosphere, come from activities such as the burning of fossil fuels, agriculture, industrial processes and transportation.