Mark Artherton, CFA

Inteqres

The health and safety of employees is a key factor in any ESG framework.  Companies must follow health and safety regulations locally, but many will go further than local rules in both their national and international operations.  The current Coronavirus crisis has highlighted other areas that companies must now consider when looking at meeting social goals under ESG policies.
Some companies closed operations in the current crisis before government enforcement came in, others have fought the rules and in some cases may have spuriously claimed to be 'essential operations' within the loosely defined government frameworks.
Companies will be open to both positive and negative reporting regardless of the stance they have taken.  We take the example of Samsung Electronics and its retail operations in the US to highlight the issues and the risks to future sales - especially through Best Buy - once the crisis abates.

The health and safety of employees is a key factor in any ESG framework.  Companies must follow health and safety regulations locally, but many will go further than local rules in both their national and international operations.  The current Coronavirus crisis has highlighted other areas that companies must now consider when looking at meeting social goals under ESG policies.
Some companies closed operations in the current crisis before government enforcement came in, others have fought the rules and in some cases may have spuriously claimed to be 'essential operations' within the loosely defined government frameworks.
Companies will be open to both positive and negative reporting regardless of the stance they have taken.  We take the example of Samsung Electronics and its retail operations in the US to highlight the issues and the risks to future sales - especially through Best Buy - once the crisis abates.

Should Companies Close Operations Before The Government Tells Them In a Crisis? - Inteqres ESG Bite