ESG Stakeholder Engagement & Communication Flashcards
6 cards from real ESG practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 ESG Stakeholder Engagement & Communication flashcards as text
What does 'free, prior, and informed consent' (FPIC) require of companies?
Answer: Obtaining genuine consent from indigenous and local communities before proceeding with projects affecting their lands or rights
FPIC, a UN human rights standard, requires companies to seek authentic consent—not just consultation—from affected indigenous peoples before any project impacting their territories or rights.
What is 'ESG investor relations' (ESG IR)?
Answer: The practice of communicating ESG strategy, performance, and risks specifically to the investment community
ESG IR involves proactively engaging institutional investors, analysts, and proxy advisors on ESG performance, ratings, and strategy to support informed investment and voting decisions.
When communicating ESG targets publicly, which characteristic most protects against greenwashing claims?
Answer: Setting science-based, time-bound targets with clear interim milestones and public progress reporting
Specific, science-based targets with defined timelines and transparent progress reporting are most defensible against greenwashing allegations because they are verifiable and accountable.
What is 'salient human rights issues' identification in stakeholder engagement?
Answer: Identifying the human rights risks most likely to result in the most severe harm to people through a company's activities
The UNGPs direct companies to prioritize 'salient' human rights issues—those presenting the greatest potential for severe, widespread, or irremediable harm to people.
What is the recommended approach when ESG stakeholder feedback conflicts with management priorities?
Answer: Document the conflict, explain the company's position transparently in ESG disclosures, and set a timeline for review
Best practice requires acknowledging divergent stakeholder views, transparently explaining management's rationale for prioritization, and demonstrating ongoing responsiveness.
Which communication format is most effective for reaching retail investor audiences on ESG topics?
Answer: Concise ESG highlights integrated into plain-language annual report summaries or standalone impact reports
Retail investors are best served by accessible, narrative-rich summaries that translate technical ESG data into understandable impact stories, unlike the detailed disclosures suited to institutional audiences.