ESG serves as the primary framework used to assess the commitment of companies in forest-risk sectors to sustainable and ethical business practices.

Considerations related to environmental aspects include efforts to mitigate climate change, resource management (water, energy, or waste), pollution control, and biodiversity conservation.

1. Ensuring the legal status of companies operating in any jurisdiction requires compliance with certain document requirements. Therefore, fulfilling mandatory documents is crucial as evidence of companies’ compliance with applicable laws and regulations, as well as demonstrating their legitimacy in conducting business activities.
2. Evaluate companies’ activities, operational impacts, and exposure to environmental risks in relation to EO1 and EO2 objectives. This includes reviewing involvement in environmentally harmful practices, compliance with environmental regulations, and the extent to which companies contribute to or mitigate environmental degradation. These assessments help identify entities whose operations conflict with environmental protection goals and sustainability standards.
3. Governance-related assessments cover corporate leadership and board structure, transparency and accountability in decision-making, risk management, as well as business ethics and anti-corruption practices.
4. The social aspect examines how companies interact with their workforce, stakeholders, and communities.