What is ESG Funding? ESG funding is generally seen as a way of funding sustainably. This means creating a scenario where underwriting, risk assessment, and funding decisions are all made while considering the environment, human wellbeing, and the impact of the economy as a whole. The practice of using ESG factors to analyze financial performance is growing in popularity throughout the world. CIG Capital is no exception, we are using ESG factors in our project analysis, as well as our corporate practices. CIG views these three factors as equivalent metrics to those previously considered more formal financial factors.
Environmental
When CIG approaches a project in its initial stages, the underwriting process determines what effect the project has environmentally; splitting our determination into two categories: positive or negative. CIG looks at elements such as waste management, deforestation and replenishment, air and water pollution, green energy, and determines if the project as a whole has a positive impact on the environment. We generally look to assist in those project that are a positive influence, and we attempt to better those projects which may not be as positive on the environment.
Social
Social impact and giving back to the community are crucial parts of CIG’s business model. When our underwriting team looks at a project, they look for the same social impact to be present. They do so by looking at a project management team’s culture, beliefs, employee and staff diversification, systems and security, customer satisfaction, and internal policies related to sexual harassment prevention, fair labor policies, and human rights domestically and abroad. The idea being to change the world for the better, by investing in those that help change the world for the better.
Governance
Governance is often thought to be a great indicator of a company’s overall benefit to the world. When analyzing projects, CIG’s underwriting team looks deeply at a project’s history, as well as the project owner’s history, to ensure there is no history of previous transgressions. Likewise, the underwriting team looks to ensure that the governance structure is built for success in areas that include having a diverse staff and leadership structure, ethical pay models, and policies that prevent corruption, environmental destruction, and a poor impact on social matters.
Why….?
CIG believes strongly in taking on some responsibility in the projects it works to partner with and fund. One of the most important stewardships that CIG follows is culture and relationships. It maintains these stewardships by following ESG standards that it believes will ultimately make the world a better place. Our corporate culture is about servant leadership and being responsible with what we take. The earth that we are blessed with as stewards must be cared for, not abused. CIG believes that everyone must be given an opportunity to become successful, regardless of their background. We remember the importance of our society and believe in helping those in need. CIG Renewable’s Co-founder Charles Carey, believes in helping those in need, and does so through his Live 80/20 Foundation, “giving and serving others is who we are,” says Charles. What you do on this earth shall be judged; when given much, much is required.