By Reynard Loki
A new report by Sustainalytics, a sustainability research and analysis firm, suggests that Brexit could prompt British companies to slack off on green schemes, which could ultimately harm the environment. Two key areas in particular—recycling and pollution—could be subject to downgraded policy changes now that the U.K. will not be required to fulfill the obligations that come with being a member of the European Union, which it has belonged to since 1973.
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The researchers examined three different issues related to environment, social and governance (ESG), three factors generally used to measure the sustainability and ethical impact of an investment in a company. “U.K. companies represent some of the world’s top ESG performers, and their strong ESG pedigree is due in no small part to the progressive policy environment in Brussels and London,” write the report’s authors, Doug Morrow and Madere Olivar.
In environment, they examined three issues: climate change, recycling and air pollution. In social, they looked at human capital, product quality standards and health and safety. Finally, in governance, they evaluated corporate governance, executive remuneration and intellectual property.